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If your domain is in the Server 2008 domain functional level (meaning all domain controllersDCsare running Server 2008), the system uses DFSR for SYSVOL replication. If the domain isnt in Server 2008 domain mode, there might be non-Server 2008 DCs, which means a server could replicate with a server that doesnt support DFSR. Therefore, the system uses FRS on all DCs. 

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Hi there. 
 
Thanks for your assistance thus far. 
I double checked the firewall, but this was already disabled since i dcpromo-ed the 2008 server. 
I did notice the ntFRS errors on the 2008 dc saying that it couldn't replicate with the 2003 DC and then found the option to enable FRS on the 2008 dc. after enabling FRS and then manually forcing a replication between the servers, there were no errors reported from the forced replication, but I am still not receiving the Netlogon share / logon bat files on my 2008 server. Perhaps server 2008 no longer uses the &quot;netlogn&quot; share, Im not entirely sure, but then what other alternative would server 2008 be using? 
 
The error received regarding the failed ntfrs replications are as follows: 
 
Log Name: &nbsp; &nbsp; &nbsp;File Replication Service 
Source: &nbsp; &nbsp; &nbsp; &nbsp;NtFrs 
Date: &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;22/07/2008 10:25:29 
Event ID: &nbsp; &nbsp; &nbsp;13508 
Task Category: None 
Level: &nbsp; &nbsp; &nbsp; &nbsp; Warning 
Keywords: &nbsp; &nbsp; &nbsp;Classic 
User: &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;N/A 
Computer: &nbsp; &nbsp; &nbsp;BCS2K801.bcs.local 
Description: 
The File Replication Service is having trouble enabling replication from BCS-PDC to BCS2K801 for c:\windows\sysvol\domain using the DNS name BCS-PDC.bcs.local. FRS will keep retrying. 
&nbsp;Following are some of the reasons you would see this warning. 
&nbsp; 
&nbsp;[1] FRS can not correctly resolve the DNS name BCS-PDC.bcs.local from this computer. 
&nbsp;[2] FRS is not running on BCS-PDC.bcs.local. 
&nbsp;[3] The topology information in the Active Directory Domain Services for this replica has not yet replicated to all the Domain Controllers. 
&nbsp; 
&nbsp;This event log message will appear once per connection, After the problem is fixed you will see another event log message indicating that the connection has been established. 
Event Xml: 
 
&nbsp; 
&nbsp; &nbsp; 
&nbsp; &nbsp; 13508 
&nbsp; &nbsp; 3 
&nbsp; &nbsp; 0 
&nbsp; &nbsp; 0x80000000000000 
&nbsp; &nbsp; 
&nbsp; &nbsp; 16 
&nbsp; &nbsp; File Replication Service 
&nbsp; &nbsp; BCS2K801.bcs.local 
&nbsp; &nbsp; 
&nbsp; 
&nbsp; 
&nbsp; &nbsp; BCS-PDC 
&nbsp; &nbsp; BCS2K801 
&nbsp; &nbsp; c:\windows\sysvol\domain 
&nbsp; &nbsp; BCS-PDC.bcs.local 
&nbsp; &nbsp; D5040000 
&nbsp; 

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Hi lads. 
 
Thanks for your input. You both have contributed to me finding the solution so have split the points according to how each one contributed to the solution. 
It was a couple of things; 
 
1. the frs service on 2008 dc had to be enabled. Had also noticed that the firewall had randomly at times activated itself again but has n't happened since... 
2. Discovered that ntfrs serive on 2003 service was causing replication failure. resolved this with registry fix and then HAPPY DAYS!! 
 
Again, thanks for pointing me in the right direction.
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Hi all. 
 
I am adding my first server 2003 STD edt. to an existing domain. I am hoping to allow AD replicate to the new 2008 server and then decommission the server 2003 DC. 
The server 2003 is not a R2 server, therefore does not even know about DFS but I have noticed that server 2008 no longer uses FRS to replicate the sysvol folder between servers. My new 2008 server does not have any of the logon scripts etc in it as my 2003 server does. 
 
I have looked around on the net but can not seem to find out whether or not there is a way around this issue. 
 
Anyones assistance would be greatly appreciated!
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Hi all.

I am adding my first server 2003 STD edt. to an existing domain. I am hoping to allow AD replicate to the new 2008 server and then decommission the server 2003 DC.
The server 2003 is not a R2 server, therefore does not even know about DFS but I have noticed that server 2008 no longer uses FRS to replicate the sysvol folder between servers. My new 2008 server does not have any of the logon scripts etc in it as my 2003 server does.

I have looked around on the net but can not seem to find out whether or not there is a way around this issue.

Anyones assistance would be greatly appreciated!

Sysvol not replicating from 2003 DC to 2008 DC - FRS issue.

Windows Server 2003 was based on Windows XP and was released in four editions: Web, Standard, Enterprise and Datacenter. It also had derivative versions for clusters, storage and Microsoft’s Small Business Server. Important upgrades included integrating Internet Information Services (IIS), improvements to Active Directory (AD) and Group Policy (GP), and the migration to Automated System Recovery (ASR).

Windows Server 2003

Windows Server 2008 and Windows Server 2008 R2, based on the Microsoft Vista codebase, is the last 32-bit server operating system released by Microsoft. It has a number of versions, including including Foundation, Standard, Enterprise, Datacenter, Web, HPC Server, Itanium and Storage; new features included server core installation and Hyper-V.