Anything show up in the bootstrap log?

And this file C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\LOG\ERRORLOG definitely doesn't exist?

Rerun the snapshot job. There's sometimes a handshake issue I've noticed.

start->administrative tools->services

scroll down, the accountson the right

Have you read http://sqlserver-qa.net/blogs/replication/archive/2007/08/24/1713.aspx

Unfortunately (and I do mean that in the sincerest sense) you can load 7.0 data into 2005. When it's loaded it will stay at that compatibility mode unless you change...

Can you check that record and see if you have a carriage return and or linefeed within the data (presuming that you are using either or both as your row...

I'm having trouble seeing what the warning in the event log have to do with your problem.

The error is related to IIS/.NET and a SQL Server 2005 database server, wheras...

I'd recommend setting up a hardware cluster in the US and another in the Europe. That way you are fault tolerant on each side of the pond.

From there go with...

The only problem with that is that in a real world scenario everyone will get different results. Depending upon the datatypes that you use, the free space in your pages...

Not from the SQL Server error log, the Windows System and Application logs. Also the cluster.log

Is there anything in the windows event logs?

Could you also post the cluster log

Have you tried running msdtc -resetlog ?

Could you post the code that you are using to attempt sending the email?

Do you have any entries in the msdb.dbo.sysmail_event_log ?