In one case on Windows 2000 Server SP4, the second <directory name> in the description was a folder that was below the first <directory name> in the description. To resolve this problem, the folder was moved and Dfs reconfigured.
In another case on Windows 2000 Server SP4, the first <directory name> in the description was the same as the second <directory name> in the description. This event cleared itself after AD replication was complete.
This event takes place when you have setup a previous DFS link, then changed the link by removing it and re adding. The AD topology needs time to replicate out and the NTFRS service needs to be informed of the changes. Since the folder names are the same for a period of time, the error takes place. My experience shows that if you wait for 10 minutes or so, the error will clear itself.