It's been my (limited) experience that you:
1) Must make the publisher the newer server
2) Create the subscription from the newer server (IE, 2008 will be
able to see the 2005 box)
Yep, this has caused me much headache. In the end, I'm going to
install 2008r2 Express (free) at my client locations, and have the
newer become the publisher, and this side will become "authoritative".
HTH,
Joseph
On Jul 16, 2:58 pm, Ross Armitage <Ross