Here's my instructions and here's what I get.

1. Begin by enabling your SQL Server 2000 installation for replication by using the "Configure Publishing, Subscribers, and Distribution" selection from the Tools->Replication menu item.
2. 
   
   what I get is an error message saying Sql does not support nicknames. such as local.Delete the sql sever regestration for this server and register it using the actual server name.
3. 
   
   When I try to do this it also deletes the files under that server.
4. 
   
   How do I correct this? I should have my lesson in hours ago.

You need to re-name your server name to something other than LOCAL, which is a reserved word.

What you should do is re-install your SQL Server and make sure you name it either by your local machine name or something other than LOCAL.
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Buh Bye!

Cheers,
Me