Unable to create package shares on distribution points

For any OSD packages in our environment (like images, driver packages, etc) I always check the option "Copy the content in this package to a package share on distribution points", so that we are able to run content directly from the DP's in a task
sequence instead of downloading it first to clients. But I've noticed now that for any new package I create, the package shares aren't being created thus my OSD tasks are failing due to missing content. When I check the copy content option for a new driver
package and monitor the distmgr.log, here is what I see:
Copying package DEV0007F to the package share location \\hou-sccmdp03.network.local\SMSPKGE$\DEV0007F on the server ["Display=\\hou-sccmdp03.network.local\"]MSWNET:["SMS_SITE=YYC"]\\hou-sccmdp03.network.local\    SMS_DISTRIBUTION_MANAGER  
 4/3/2013 11:02:35 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:35 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:40 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:45 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:50 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:55 AM    2156 (0x086C)
Failed to set security on \\hou-sccmdp03.network.local\SMSPKGE$\DEV0007F for package DEV0007F    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:03:00 AM    2156 (0x086C)
That same sequence of errors is repeated for every distribution point we have. I checked the sharing permissions on the SMSPGKE$ and SMSSIG$ folders on the DP and everything looks correct. I only started noticing this issue after our SP1 upgrade, but I can't
find anything from Microsoft saying this is a known bug or how to fix it. This is also affecting new distribution points that we created after the SP1 upgrade, so I don't believe going down the remove/reinstall of all the DP's route will work. Any suggestions?

Copying package DEV0007F to the package share location \\hou-sccmdp03.network.local\SMSPKGE$\DEV0007F on the server ["Display=\\hou-sccmdp03.network.local\"]MSWNET:["SMS_SITE=YYC"]\\hou-sccmdp03.network.local\    SMS_DISTRIBUTION_MANAGER  
 4/3/2013 11:02:35 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:35 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:40 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:45 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:50 AM    2156 (0x086C)
SetObjectSecurity failed; 0x80070002    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:02:55 AM    2156 (0x086C)
Failed to set security on \\hou-sccmdp03.network.local\SMSPKGE$\DEV0007F for package DEV0007F    SMS_DISTRIBUTION_MANAGER    4/3/2013 11:03:00 AM    2156 (0x086C)
I've seen similar errors after installing SP1:
Failed to set share security on share \\DP.domain.tld\SMSSIG$. Error = 5
Failed to set access security on share SMSSIG$ on server DP.domain.tld
DPConnection::Disconnect: Revert to self
Cannot find or create the signature share.
Solution for that case: Use the computer account instead of a site system installation account:
That might fix it.
Torsten Meringer | http://www.mssccmfaq.de

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    Thread Handle = 00000000000029C8  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:05.612-600><thread=11128 (0x2B78)>
    Attempting to add or update a package on a distribution point.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:05.522-600><thread=10028 (0x272C)>
    DP thread with array index 0 ended.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.124-600><thread=136 (0x88)>
    DP thread with thread handle 00000000000035C0 and thread ID 9852 ended.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.131-600><thread=136 (0x88)>
    The distribution point ["Display=\\[SERVER NAME HERE]\"]MSWNET:["SMS_SITE=RDO"]\\[SERVER NAME HERE]\ is not installed or upgraded yet.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.136-600><thread=10028 (0x272C)>
    Error occurred. Performing error cleanup prior to returning.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.164-600><thread=10028 (0x272C)>
    DP thread with array index 0 ended.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.198-600><thread=11128 (0x2B78)>
    DP thread with thread handle 00000000000029C8 and thread ID 10028 ended.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.205-600><thread=11128 (0x2B78)>
    ~Package RDO00002 does not have a preferred sender.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.645-600><thread=136 (0x88)>
    The package and/or program properties for package RDO00002 have not changed,  need to determine which site(s) need updated package info.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.653-600><thread=136 (0x88)>
    ~CDistributionSrcSQL::UpdateAvailableVersion PackageID=RDO00002, Version=3, Status=2301  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.659-600><thread=136 (0x88)>
    ~StoredPkgVersion (3) of package RDO00002. StoredPkgVersion in database is 3.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.687-600><thread=136 (0x88)>
    ~SourceVersion (3) of package RDO00002. SourceVersion in database is 3.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.694-600><thread=136 (0x88)>
    STATMSG: ID=2302 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=[SITE SERVER NAME HERE] SITE=RDO PID=3112 TID=136 GMTDATE=Thu May 01 12:21:06.700 2014 ISTR0="Configuration Manager Client Package" ISTR1="RDO00002"
    ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=400 AVAL0="RDO00002"  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.700-600><thread=136
    (0x88)>
    ~Failed to process package RDO00002 after 33 retries, will retry 67 more times  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.711-600><thread=136 (0x88)>
    ~Exiting package processing thread.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.720-600><thread=136 (0x88)>
    ~Package RDO00003 does not have a preferred sender.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.721-600><thread=11128 (0x2B78)>
    The package and/or program properties for package RDO00003 have not changed,  need to determine which site(s) need updated package info.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.749-600><thread=11128 (0x2B78)>
    ~CDistributionSrcSQL::UpdateAvailableVersion PackageID=RDO00003, Version=1, Status=2301  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.757-600><thread=11128 (0x2B78)>
    ~StoredPkgVersion (1) of package RDO00003. StoredPkgVersion in database is 1.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.784-600><thread=11128 (0x2B78)>
    ~SourceVersion (1) of package RDO00003. SourceVersion in database is 1.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.790-600><thread=11128 (0x2B78)>
    STATMSG: ID=2302 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=[SITE SERVER NAME HERE] SITE=RDO PID=3112 TID=11128 GMTDATE=Thu May 01 12:21:06.797 2014 ISTR0="Configuration Manager Client Upgrade Package"
    ISTR1="RDO00003" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=400 AVAL0="RDO00003"  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014
    22:21:06.797-600><thread=11128 (0x2B78)>
    ~Failed to process package RDO00003 after 33 retries, will retry 67 more times  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.806-600><thread=11128 (0x2B78)>
    ~Exiting package processing thread.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:06.814-600><thread=11128 (0x2B78)>
    Sleep 20 minutes...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:09.311-600><thread=5868 (0x16EC)>
    ~Package Thread Limit: 3  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.463-600><thread=5576 (0x15C8)>
    ~Per package Thread Limit: 5  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.469-600><thread=5576 (0x15C8)>
    ~Retry interval: 30  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.476-600><thread=5576 (0x15C8)>
    ~DP upgrade thread Limit: 5  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.482-600><thread=5576 (0x15C8)>
    ~DP upgrade retry interval: 20  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.488-600><thread=5576 (0x15C8)>
    ~Used 0 out of 3 allowed processing threads.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.509-600><thread=5576 (0x15C8)>
    ~Sleep 1826 seconds...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:10.517-600><thread=5576 (0x15C8)>
    Sleep 20 minutes...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:14.320-600><thread=5868 (0x16EC)>
    ~Used 0 out of 3 allowed processing threads.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:15.544-600><thread=5576 (0x15C8)>
    ~Sleep 1821 seconds...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:15.553-600><thread=5576 (0x15C8)>
    Sleep 20 minutes...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:19.332-600><thread=5868 (0x16EC)>
    ~Used 0 out of 3 allowed processing threads.  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:20.581-600><thread=5576 (0x15C8)>
    ~Sleep 1816 seconds...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:20.589-600><thread=5576 (0x15C8)>
    ~Sleep 1816 seconds...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:20.732-600><thread=5576 (0x15C8)>
    ~Sleep 1816 seconds...  $$<SMS_DISTRIBUTION_MANAGER><05-01-2014 22:21:20.872-600><thread=5576 (0x15C8)>
    So I have two questions,
    How can I fix this and how do I prevent it from happening to the remainder?
    Thank you all in advance.
    Daniel.

    The server does not appear at all
    You really need to give more information so we can help you.
    What about the logs, are you getting the same errors after making all the changes? please upload the full log to SkyDrive or any other place. 
    Did you reboot this DP\DC?
    Can you successfully ping from the primary to DP and back?
    Do you have access from primary to C$ on that DP?
    What account did you choose for installation?
    Did you choose to install IIS?
    If IIS was installed, try to remove it and let DP installation install it automatically.
    Confirm that PowerShell 3.0 is installed.
    Please take a moment to Vote as Helpful and/or Mark as Answer where applicable. Thanks.
    Hi Idan,
    I will go through and reply to each of the suggestions you have made below;
    1. The log that was attached was the full log. I cleared the log prior to setting up the DP and copied the contents into this forum after it has stopped.
    2. Yes I had rebooted, Many times.
    3. Yes I can successfully ping either way.
    4. Yes I can access the C$ share on the DP from the Primary
    5. I have tried both the PC account and a service account that is part of the domain admins group and also added to the local admins via a net command
    6. Yes I did choose to install IIS and I had already tried uninstalling IIS and running the install again.
    7. as above
    8. Yes Powershell 3.0 is installed
    PS C:\Users\admindg> $PSVersionTable
    Name                           Value
    PSVersion                      4.0
    WSManStackVersion              3.0
    SerializationVersion           1.1.0.1
    CLRVersion                     4.0.30319.34014
    BuildVersion                   6.3.9600.16394
    PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0}
    PSRemotingProtocolVersion      2.2
    Thank you for all your suggestions and I hope that the information that I have provided is sufficient to draw a better picture of our environment.
    Regards,
    Daniel

  • 2012 -- 2012 Migration: How to Reassign Distribution Points that Reside on Source Secondary Site Servers to the Target Site

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