Please help from throwing my PC out the window! I have spent the past 4 days trying to install this sample (which uses SQLServer CE).

I eventually re-formatted my PC and:
1. Installed Win2k (NTFS)
2. Added IIS
3. Installed Visual Studio .NET
4. Installed SQLServer CE 2.0 (Development and Server Tools), but cleared check-box for running the Virtual Directory Creation Wizard (because MSDE not installed yet). Does it matter that this installs MDAC 2.6 (old version)?
5. Installed MSDE (if I install this before SQLServer CE, SSSSSQL Server CE 2.0 complains about service pack versions)

Now the question is:
When I run the SQLServer CE Virtual Directory Creation Wizard, I don't know what to do about the snapshot folder step (which I assume is necessary for merge replication). It says that this should be created as part of the SQL Server Distributor configuration - how do I do that?

I have tried running the IBuySpy Delivery installation (thinking that the SQL scripts may do everything necessary) but this fails. Here is the log:

16:20:19 13 November 2003: [Checking system requirements]
16:20:19 13 November 2003: [Pass] Detected a local instance of SQL Server.
16:20:19 13 November 2003: [Pass] Determined SQL Server version (8.00.194).
16:20:19 13 November 2003: [Pass] Detected SQL Server CE Server Tools.
16:20:19 13 November 2003: [Pass] Detected .NET Framework.
16:20:19 13 November 2003: [Pass] Detected Internet Information Server (IIS).
16:20:26 13 November 2003: [Begin Sample Configuration]
16:20:27 13 November 2003: [Pass] Register file permission object.
16:20:27 13 November 2003: [Pass] Get intall path of SQL Server CE Server Tools.
16:20:27 13 November 2003: [Pass] Create directory for SQL server agent.
16:20:27 13 November 2003: [Pass] Grand NTFS permissions to SQL server agent directory.
16:20:27 13 November 2003: [Pass] Set permission on SQL server agent
16:20:27 13 November 2003: [Pass] Register SQL server agent .
16:20:27 13 November 2003: [Pass] Register SQL server replication provider.
16:20:28 13 November 2003: [Pass] Created IIS virtual directory.: StoreCSVS
16:20:28 13 November 2003: [Pass] Determined SQL Server version (8.00.194).
16:20:28 13 November 2003: [Pass] Started selected instance of SQL Server.
16:21:14 13 November 2003: [Pass] Executed SQL script.: StoreDB.sql
16:21:15 13 November 2003: [Pass] Added CP-LAPTOP\ASPNET user to SQL Server.
16:21:15 13 November 2003: [Pass] Added CP-LAPTOP\ASPNET user to database.: Store
16:21:20 13 November 2003: [Pass] Configure the Distributor.
16:21:20 13 November 2003: [Pass] Update the agent profile defaults.
16:22:05 13 November 2003: [Warning] Add the distribution database - : Timeout expired. The timeout period elapsed prior to completion of the operation or the server is not responding.
16:22:05 13 November 2003: [Warning] Add the distribution publisher - : Invalid working directory 'C:\Program Files\Microsoft SQL Server\MSSQL\ReplData'.
16:22:05 13 November 2003: [Warning] Enable the replication database - : The Distributor has not been installed correctly. Could not enable database for publishing.
The replication option 'merge publish' of database 'Store' has been set to false.
16:22:05 13 November 2003: [Warning] Add the merge publication - : The 'Store' database is not published for merge replication.
16:22:06 13 November 2003: [Warning] Add publication snapshot - : Object 'StoreSample' does not exist or is not a valid object for this operation.
16:22:06 13 November 2003: [Warning] Grant publication access to BUILTIN\Administrators - : Could not find the Distributor or the distribution database for the local server. The Distributor may not be installed, or the local server may not be configured as a Publisher at the Distributor.
16:22:06 13 November 2003: [Warning] Grant publication access to distributor_admin - : Could not find the Distributor or the distribution database for the local server. The Distributor may not be installed, or the local server may not be configured as a Publisher at the Distributor.
16:22:06 13 November 2003: [Warning] Grant publication access to sa - : Could not find the Distributor or the distribution database for the local server. The Distributor may not be installed, or the local server may not be configured as a Publisher at the Distributor.
16:22:06 13 November 2003: [Warning] Grant publication access to CP-LAPTOP\ASPNET: Could not find the Distributor or the distribution database for the local server. The Distributor may not be installed, or the local server may not be configured as a Publisher at the Distributor.
16:22:07 13 November 2003: [Pass] Executed SQL merge publication script.: MergePublication.sql
16:22:09 13 November 2003: [Fail] Error executing SQL merge publication script. (Script/ExitCode): MergePublication.sql/2
16:22:09 13 November 2003: [Done]