Secondary site creation

OK I'm very new to SMS administration and am just starting to deploy SMS in
my organization. I've setup the primary site server at our HQ location and am
now trying to create a secondary site in our Shanghai location but so far has
not worked. The secondary site server is a Win2003 R2 domain controller and
I've added the primary site server's computer account to our domain admins
group (single win2000 domain) plus made sure it has IIS with BITS extensions
enabled. Now I didn't have IIS or the computer account added to domain admins
until a couple hours after I finished the create secondary site wizard. I got
an SMS_LAN_SENDER component error of "The sender cannot connect to remote
site "SH1" over the LAN. The operating system reported error 5: Access is
denied." right after I started and that's why I went through and added the
computer account to domain admins and installed IIS.

Here is the bottom 20 lines or so of my sender.log:
~Cannot connect to server SH02NT.domain.com at remote site SH1, won't try
send requests going to site SH1 for an hour or until there are no active send
requests. $$<SMS_LAN_SENDER><Fri Feb 09 20:30:14.963 2007 Eastern Standard
Time><thread=3740 (0xE9C)>
~There is no existing connection, Win32 error = 5 $$<SMS_LAN_SENDER><Fri
Feb 09 20:30:16.619 2007 Eastern Standard Time><thread=3740 (0xE9C)>
~There is no existing connection, Win32 error = 5 $$<SMS_LAN_SENDER><Fri
Feb 09 20:30:17.072 2007 Eastern Standard Time><thread=3740 (0xE9C)>
Error during connection to \\SH02NT\C$ (5).~ $$<SMS_LAN_SENDER><Fri Feb 09
20:30:17.088 2007 Eastern Standard Time><thread=3740 (0xE9C)>
Error is considered fatal.~ $$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.088 2007
Eastern Standard Time><thread=3740 (0xE9C)>
~Cannot connect to server SH02NT at remote site SH1, won't try send requests
going to site SH1 for an hour or until there are no active send requests.
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.103 2007 Eastern Standard
Time><thread=3740 (0xE9C)>
Could not establish connection.~ $$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.119
2007 Eastern Standard Time><thread=3740 (0xE9C)>
~Attempt to connect failed. $$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.119
2007 Eastern Standard Time><thread=3740 (0xE9C)>
~Restart time = 02/09/07 20:35:17 Eastern Standard Time
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.150 2007 Eastern Standard
Time><thread=3740 (0xE9C)>
~We have 0 active connections $$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.869
2007 Eastern Standard Time><thread=3168 (0xC60)>
Checking for sending capacity. Used 0 out of 5.~ $$<SMS_LAN_SENDER><Fri
Feb 09 20:30:17.869 2007 Eastern Standard Time><thread=3168 (0xC60)>
Connecting to D:\SMS\inboxes\schedule.box\outboxes\LAN.~
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.885 2007 Eastern Standard
Time><thread=3168 (0xC60)>
No (more) send requests found to process.~ $$<SMS_LAN_SENDER><Fri Feb 09
20:30:17.900 2007 Eastern Standard Time><thread=3168 (0xC60)>
~Waiting for new/rescheduled send requests, Maximum Sleep Time = 60 minutes
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.900 2007 Eastern Standard
Time><thread=3168 (0xC60)>
~We have 0 active connections $$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.916
2007 Eastern Standard Time><thread=3168 (0xC60)>
Checking for sending capacity. Used 0 out of 5.~ $$<SMS_LAN_SENDER><Fri
Feb 09 20:30:17.932 2007 Eastern Standard Time><thread=3168 (0xC60)>
Connecting to D:\SMS\inboxes\schedule.box\outboxes\LAN.~
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.932 2007 Eastern Standard
Time><thread=3168 (0xC60)>
No (more) send requests found to process.~ $$<SMS_LAN_SENDER><Fri Feb 09
20:30:17.947 2007 Eastern Standard Time><thread=3168 (0xC60)>
~Waiting for new/rescheduled send requests, Maximum Sleep Time = 60 minutes
$$<SMS_LAN_SENDER><Fri Feb 09 20:30:17.963 2007 Eastern Standard
Time><thread=3168 (0xC60)>
~We have 0 active connections $$<SMS_LAN_SENDER><Fri Feb 09 20:35:23.037
2007 Eastern Standard Time><thread=3168 (0xC60)>
Checking for sending capacity. Used 0 out of 5.~ $$<SMS_LAN_SENDER><Fri
Feb 09 20:35:23.037 2007 Eastern Standard Time><thread=3168 (0xC60)>
Connecting to D:\SMS\inboxes\schedule.box\outboxes\LAN.~
$$<SMS_LAN_SENDER><Fri Feb 09 20:35:23.037 2007 Eastern Standard
Time><thread=3168 (0xC60)>
No (more) send requests found to process.~ $$<SMS_LAN_SENDER><Fri Feb 09
20:35:23.053 2007 Eastern Standard Time><thread=3168 (0xC60)>
~Waiting for new/rescheduled send requests, Maximum Sleep Time = 60 minutes
$$<SMS_LAN_SENDER><Fri Feb 09 20:35:23.068 2007 Eastern Standard
Time><thread=3168 (0xC60)>

Can some wise person give me a hint at what how I can correct this? Do I
need to quit out of this by deleting the site from the SMS admin console and
starting over now that I have the right setup? Or am I still not setup right
and if so, what do you suggest I do to fix the problem?

Thanks,
.

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