Can't get pull subscription working.

SQL Server 2008 R2 - SP2 - Windows 2008 R2, Windows 2003 SP2.

I am trying to setup a Transactional pull subscription from a second SQL Server but can't get it to work. I have tried setting it from the publisher server or the subscription server but no luck. I thought I have the userid issue and used sa to connect to distributor but still no luck. I am not restoring the database on the subscription server, I am creating a new one.

I have created multiple snapshots, tried reinitializations, syncronizations and all but no luck. What am I missing ?

I did get the push subscription to work.

Thanks