I have set up snapshot replication between 2 instances on the same server (For testing)
The snapshot job runs fine but the distribution job fails with error:
Unable to start execution of step 1 (reason: Could not get proxy data for proxy_id = 2). The step failed.
Publisher: SQL 2008 Ent Edition
Subscriber: SQL 2005 Std Edition
SQL Agent runs under the same account (Network Service) for both instances.
I had an identical setup between 2 2008 instances and there were no issues