During the SBS 2008 to SBS 2008 migration the Process/Status bar just after the Answer File settings was stuck at 1/10th of the way up (See Below) This error also happens from SBS 2003 to SBS 2008 migration.
If you press Ctrl + Shift + Esc and go New –> Task and type Eventvwr.msc you will see under “Application and Service Logs” –> DFS Replication the Error 13508
Before trying the below method that resolved this for me double checked the windows firewall is off as it could be something as simple as this that resolves the issue.
Event ID: 13508
The File Replication Service is having trouble enabling replication from to for
using the DNS name . FRS will keep retrying.
Following are some of the reasons you would see this warning.
 FRS is not running on .
 The topology information in the Active Directory for this replica has not yet replicated to all the Domain Controllers.
This event log message will appear once per connection, After the problem is fixed you will see another event log message indicating that the connection has been established.
In our case it was a firewall between the sites blocking the RPC traffic so once this was opened up between the two servers it replicated without any problems. Here’s the article we found on Experts Exchange that helped us go through the quick checks:
1) Examine the FRS event ID 13508 to determine the machine that FRS has been unable to communicate with.
2) Determine whether the remote machine is working properly, and verify that FRS is running on it. Type the following command at a command prompt on the computer that logged the FRS event ID 13508 and press ENTER:
If this fails, check network connectivity by using the Ping command to ping the fully qualified domain name (FQDN) of the remote domain controller from the computer that logged the FRS event ID 13508. If this fails, then troubleshoot as a DNS or TCP/IP issue. If it succeeds, confirm that the FRS service is started on the remote domain controller.
3) Determine whether FRS has ever been able to communicate with the remote computer by looking for FRS event ID 13509 in the event log and see if the FRS problem correlates to recent change management to networking, firewalls, DNS configuration, or Active Directory infrastructure.
4) Determine whether anything between the two machines is capable of blocking RPC traffic, such as a firewall or router.
5) Confirm that Active Directory replication is working. For more information about troubleshooting Active Directory replication, see Troubleshooting Active Directory Replication Problems in this guide.
Having gone through several articles we also found alot of users fixed this via a registry tweak. It’s a D2 tweak on the ‘secondary’ server telling it to pull replication from the Primary DC and a D4 registry tweak on the ‘primary’ server telling it that it holds all of the master records to replicate out.
D2 – Non-Authoritative restore (pull from another DC)
D4 – Authoritative restore
Steps for setting D2/D4 are:
1) Stop File Replication service via Start – Run – type in CMD, click ok. In the Command Prompt window type ‘net stop ntfrs’ and press enter
2) Use RegEdit to edit “BurFlags” in the key “HKLMSystemCurrentControlSetServicesNtfrsParametersBackup/RestoreProcess at Startup”
* edit the dword key “BurFlags” in Hex format.
* change from 0 to D2 or D4
3) Start the File Replication service via Start – Run – type in CMD, click ok. In the Command Prompt window type ‘net start ntfrs’ and press enter