Distribution Point creation failed. possible cause : distribution manager does not have the sufficient access right to the computer

Hi All,
I had this really disturbing experience with
SCCM 2012 SP1.
OD : 2008r2 Enterprise 64bit 
Possible cause: Distribution Manager does not have sufficient rights to the computer.
Solution: Verify that the site server computer account is administrator of the computer.
in Distmgr.log says :
DPConnection::Disconnect: Revert to self
SMS_DISTRIBUTION_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
DPConnection::Connect: For ["Display=\\PNGBRANCHSERVER.xxx\"]MSWNET:["SMS_SITE=SSM"]\\PNGBRANCHSERVER.xxx\, logged-on as ssm\sccmadmin
SMS_DISTRIBUTION_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
DPConnection::Connect: For ["Display=\\PNGBRANCHSERVER.xxx\"]MSWNET:["SMS_SITE=SSM"]\\PNGBRANCHSERVER.x\, logged-on as ssm\sccmadmin
SMS_DISTRIBUxxx ON_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
Failed to find a valid drive on the distribution point ["Display=\\PNGBRANCHSERVER.xxx"]MSWNET:["SMS_SITE=SSM"]\\PNGBRANCHSERVER.ssm.com.myx
DPConnection::Disconnect: Revert to selfxxx
MS_DISTRIBUTION_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
DPConnection::Disconnect: Revert to self SMS_DISTRIBUTION_MANAGER
5/26/2014 7:34:30 AM 16280 (0x3F98)
 GetContentLibLocation() failed SMS_DISTRIBUTION_MANAGER
5/26/2014 7:34:30 AM 16280 (0x3F98)
Failed to get the content library path on server PNGBRANCHSERVER.  SMS_DISTRIBUTION_MANAGER
5/26/2014 7:34:30 AM 16280 (0x3F98)
Failed to install DP files on the remote DP. Error code = 16389
SMS_DISTRIBUTION_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
STATMSG: ID=2370 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=SCCMSVR. SITE=SSM PID=2660 TID=16280 GMTDATE=Sun May 25 23:34:30.428 2014 ISTR0="["Display=\\PNGBRANCHSERVER.ssm.com.my\"]MSWNET:["SMS_SITE=SSM"]\\PNGBRANCHSERVER.\"
ISTR1="PNGBRANCHSERVER.S" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=404 AVAL0="["Display=\\PNGBRANCHSERVER.\"]MSWNET:["SMS_SITE=SSM"]\\PNGBRANCHSERVER.ssm.com.my\"
SMS_DISTRIBUTION_MANAGER 5/26/2014 7:34:30 AM
16280 (0x3F98)
I have tried many of the solution provided unfortunately nothing positive happened.
Appreciate your input before engaging premier support.
Thank you

Hi,
NO_SMS_ON_DRIVE.SMS
This file is used to prevent Configuration Manager from installing binaries to a volume. By default, when you install System Center 2012 Configuration Manager on a remote Site System, the SMS Site Component Manager Service installs the binaries (files and
folders) for the Site System on the NTFS-formatted volume that contains the most free space. You may want to use an NTFS volume other than the default volume for your remote Site Systems by preventing ConfigMgr from enumerating certain NTFS volumes.
In order to prevent CM from enumerating an NTFS volume, on the remote server you can create a text file that is named NO_SMS_ON_DRIVE.SMS and put the this file on the root folder of all NTFS volumes where you do not want to install the binaries (SMS folder)
for the ConfigMgr components.
We
are trying to better understand customer views on social support experience, so your participation in this
interview project would be greatly appreciated if you have time.
Thanks for helping make community forums a great place.

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