In our case, the issue was caused by DFS. Deleting and recreating the links allowed us to change the staging directories and fix FRS.
In my case, on a Windows 2000 Cluster Server, the pathname of the staging directory in the description was s:\frs-staging. The path did exist, was accessible, and had recent files in it. The s: drive seems to have been chosen by Dfs when it was configured, but this is a drive that is shared with a second Windows 2000 Cluster Server. I tried the procedure in the "Microsoft TechNet Article", but this seems to relate to the SYSVOL Share and not Dfs replicas of user Shares. I recommend to reconfigure Dfs to use only computers that are not running Windows 2000 Cluster Server if the Shared Drive is not a Dfs Root. As a workaround, when the Shared Drive is switched over from one Windows 2000 Cluster Server to the other, stop and start the FRS service on both Windows 2000 Cluster Servers.
If you are willing to have a Dfs Root on the Shared Drive itself, a solution can be found in ME220819
The Dfs Configure Replication Wizard has a Staging button that can be used to change the location of the Frs-Staging folder. This may resolve the problem, but I have been unable to try it.
shows information on how to reset the File Replication service staging folder to a different logical drive.
When you get this error in the event viewer, verify that the SYSVOL share is pointing to the right directory on your server. If you had to recover AD from backup, the share may be lost. Recreating the share and pointing it to the right path will resolve this issue. Donít forget to reboot the server after you make the change.
I had this happen when my main 2000 server went down. The solution is to create the staging folder along with another folder of your domain name in the "staging" folder, i.e. "c:\winnt\sysvol\staging\<your domain name>".
I also had this problem and found out, that the staging directory wasnít created on my system.