From: Zac on
When attempting to create a merge publication with either the publication
wizard in management studio, or with a script, we receive the following error
upon execution of sp_addpublication_snapshot.

Msg 3930, Level 16, State 1, Procedure sp_grant_login_to_proxy, Line 70
The current transaction cannot be committed and cannot support operations
that write to the log file. Roll back the transaction.
Msg 3931, Level 16, State 1, Procedure sp_MSrepladdproxyaccount, Line 129
The current transaction cannot be committed and cannot be rolled back to a
savepoint. Roll back the entire transaction.

What needs to be done to resolve this problem?
Thanks!