Initial Replication getting failed

My current lab setup is given below:

Two Physical Servers :

Say HVH01 & HVH02
Replication is configured on both servers but replication getting failed for a VM named VMXX.
Here are the details of replication status :

Replication Type : Primary for HVH02 and Replica for HVH01
Current Primary Server : HVH02
Current Replica Server : HVH01
Replication State : Pending Initial Replication
Replication Health : Warning

Other Details :
HVH02
Hard Disk : virtualhdd.vhd
Size : 600GB

HVH01
Hard Disk : A5476F8A-XXXX-CCCC-XXXX-8XXXX96XXXXE.vhd (size 1.5MB)
There is another file in same folder virtualhdd.vhd.tmp (600GB)

As replication is getting failed and to resolve this issue my client suggested me the comment as given below :

So how replication is setup is very standard. When the replication fails. The configuration needs to be deleted and the replica virtual machine needs to be deleted from the replica server. Then you need to manually go on the Hard Drive and delete the folder that contains the virtual hard drive file. After that you need to recreate the replication using the standard configuration. Primarily the virtual runs on HVH02 and then the replica server is HVH01. And then just start the replication.

Above statement of him is very confusing for me.I am not clear what he want from me to do. Can anyone help me about how to proceed in order to get replication happen without any impact.