Replication Problem where Distributor & Subcriber on same machine

What I would like to do is set up transactional replication from server1 (Publisher) to server2 (Subscriber), with server2 acting as the (Distributor).

I am successful on server2 in allowing server2 as a distributor for server1. When I try to configure replication on server1 to use server2 as a distributor and subscriber I get this message once

"
SQL Server Enterprise Manager could not enable 'server2' as a Subscriber.

Error 14071: Could not find the Distributor or the distribution database fom the local server. The Distributor may not be installed, or the local server may not be configured as a Publisher at the Distributor.
"

and this mesage for each database I enable for subscription, I get this message.

"
SQL Server Enterprise Manager could not enable database 'x' for snapshot or transactional replications.

Error 20028: The Distributor has not been correctly installed. Could not enable database for publishing. The replication 'publish' of database 'x' has been set to false.
"

The last message I get is

"
SQL Server Enterprise Manager successfully enabled 'server2' as the Distributor for 'server1'.
"

This message is apparently false.

When I try to Configure Publishing, Subscribers and Distributing... on server1, I get the message

"
SQL Server Enterprise Manager could not retrieve information about the Distributor or the distribution database.
"

In an attempt to fix this I:
1. disable publishing on server1,
2. disable publising and distribution on server2.
3. enable publishing and distribution on server2.
4. enable publishing on server1 using server2 as distributor.

Again I get errors on step 4.

I have even tried re-installing SQL Server 2000 on server2 with no improvement.

Can some one please shed some light on this problem?

Thanks in advance.Connect to the SQL Server using Query Analyzer and run the following query: select @.@.servername.

If it returns NULL you will need to run the sp_addserver procedure to get
the internal server name correct. You may need to run sp_dropserver as
well. These are documented in Books on Line.

A NULL server name can cause wierd behavior with replication.|||I do have a NULL server name problem. I have run the sp_dropserver, sp_addserver and have retarted SQL Server.

I have tried again to create the replication & it now WORKS!

Satya, thanks soooo much for you help!