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SQL Server 2008 Replication

I have a request to set up database replication from Production databases to Test databases as Ad-Hoc, to enable the QA team always have live data to test whenever it's required.

Production box and Test Box on different domain

What is the best possible way to meet these requirements?
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Tony303
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After I configured the distribution, I noticed the following: repl_distributor under the Linked Servers in the same Production box.  Is this a normal occurence?
Also, what's the Recovery mode for distribution database?
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Excellent!