I also had a problem setting up Distributed File Services (DFS) on Windows Server 2003 as well. I wasn’t quite sure what I was doing and it didn’t look like things were replicating, and all of a sudden a folder similar to “FolderName_NTFRS_<xxxxxxxx>” appeared. MS has a knowledge base article about that, but that didn’t help me. I eventually blew most of it away and started from scratch - being patient waiting for DFS replication to occur helped quite a bit.