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SQL 2008. Merge replication. Snapshot agent. Access Denied

Posted By:      Posted Date: October 24, 2010    Points: 0   Category :Sql Server
Windows Server 2008 Standard x64 SP1, SQL Server 2008 Enterprise Edition x64 SP1
Snapshot agent has read-write permissions to ReplData folder but cannot access local snapshot folder. How to resolve this error?

Error messages:
Source: mscorlib
Target Site: Void WinIOError(Int32, System.String)
Message: Access to the path 'C:\Program Files\Microsoft SQL Server\MSSQL10.MSSQLSERVER\MSSQL\ReplData\unc\ServerName_DatabaseName_PublicationName\DateTime\' is denied.
Stack:    at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
   at System.IO.Directory.InternalCreateDirectory(String fullPath, String path, DirectorySecurity dirSecurity)
   at System.IO.Directory.CreateDirectory(String path, DirectorySecurity directorySecurity)
   at Microsoft.SqlServer.Replication.Utilities.CreateDirectoryWithExtendedErrorInformation(String directory)
   at Microsoft.SqlServer.Replication.Snapshot.SnapshotProvider.CreateSnapshotFolders()
   at Microsoft.SqlServer.Replication.Snapshot.MergeSnapshotProvider.CreateSnapshotFolders()
   at Microsoft.SqlServer.Replication.Snapshot.SqlServerSnapshotProvider.GenerateSnapshot()
   at Microsoft.SqlServer.Replication.SnapshotGenerationAgent.InternalRun()
   at Microsoft.SqlServer.Replication.AgentCore.Run() (Source: mscorlib, Error number: 0)
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