Restore From Backup - Cannot declare more than 10000 local variables.

I found this related article but not much else regarding this issue but its solution is not possible for me due to the size of the database.

http://social.msdn.microsoft.com/Forums/sqlserver/en-US/1601c634-ed7e-41db-aff5-f324e04cbe24/issue-with-replication-synctype-initialize-with-backup

My Database is 50+ GB so I can't use snapshot as i need to compress the data before I transport it over the WAN. Snapshot Compression failed because the snapshot is to large. This seems like a wierd error as I can zip the file but suspect it has something to do with what ever compression MS is using on snapshots has a 2GB limit or something,

Anyways I ran profiler to try to capture exactly what the error was basically Its in a loop it creates the SP_MSDelDbo stored procs for each table then runs the failing query then rolls back and starts the process over again.

Below is a screen shot from Profiler but running the commnad executing before the error

if columnproperty(object_id(N'dbo.MSreplication_objects'), N'article', 'AllowsNull') is not null 
exec ('insert dbo.MSreplication_objects (object_name, publisher, publisher_db, publication, article, object_type) values (
                                    + N''sp_MSdel_dboE_RE_LIST_TransacFolders'' , N''CTMS1'' , N''ctmsoftware2'' , N''CTMSoftware2'' , N''E_RE_LIST_TransacFolders'' ,''P'')')

executes succesfully with 1 row so not sure exactly why I can't see the error or how to fix it.

Any help would be appreciated.

Thanks

Andy