Use SQL authenication. If this does not work, use an account a local machine account on the publisher and create that account on the subscriber with the same password.
Then add these accounts to the db_owner role in the publication, distribution, and subscription databases.
looking for a book on SQL Server 2008 Administration?
http://www.amazon.com/Microsoft-Server-2008-Management-Administration/dp/067233044X looking for a book on SQL Server 2008 Full-Text Search?
http://www.amazon.com/Pro-Full-Text-Search-Server-2008/dp/1430215941