I'm trying to setup two msde databases (database name: breeze) to merge replicate to each other on different servers (breeze1 and breeze2). I try to use sql2k enterprise manager to setup replication, but I keep getting this error when I try to setup publishing.

SQL Server Enterprise Manager could not configure 'BREEZE1' as the Distributor for 'BREEZE1'.

Error 14113: Could not execute "'"C:\program files\microsoft sql server\80\tools\\binn\osql" -E -l60 -t60 -d"distribution" -b -i"c:\MSDESQL\Binn\MSSQL\\install\instdist.sql" -o"c:\msdesql\binn\mssql\\install\instdist.out"' ". Check 'instdist.out' in the install directory.
'distribution' is not configured as a distribution database.
Deleting database file 'c:\msdesql\data\mssql\data\distribution.ldf'.
Deleting database file 'c:\msdesql\data\mssql\data\distribution.mdf'.

I have a feeling this is failing because I have not C:\msdesql\binn\mssql\install\ directory at all.

Is there something I'm doing wrong...

Newb to replication and msde...help me out please?