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I have recently tried to setup replication. We are using the following topology:

Publisher Server -> Distributor Server -> Subscription Server

We currently have this setup using a different set of servers and it works without issue and i have used this set of servers as my template, so to speak.

With my new set of servers, i have been receiving the following SQL Agent error message when trying to run my initial snapshot from Publisher to Distributor:

Unable to start execution of step 2 (reason: Error authenticating proxy MyDomain\MyUserAccount, system error: The user name or password is incorrect.)

I have confirmed that i have the valid credentials regarding my user account and that it has sufficient access to the SQL instances in question. Additionally, it can also write to the snapshot folder share.

I have even ripped everything out and started a fresh, with a new user account.

I have tried to setup my publication using the existing distributor server we have and it went straight through without issue.

I have Googled this error message a lot, and nothing seems to have worked or be relevant to my issue at hand.

Any pointers would be greatly appreciated.

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We have literally just solved this issue.

It turns out, the SQL agent was configured to run as my user in the following format:

Myuser@domain.com

I simply changed this to use the following format:

MyDomain\Myuser

It suddenly just started working once I changed that.

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