Merge Process Could Not Initialize The Subscription

I am experiencing some replication problems. I have a test server with a test database which has been working just fine with some simple Merge Replication. That old server is now been targeted for decommissioning. I have moved the test database to another test server and have set everything conceivable up the same as it was on the prior server but I am experiencing errors that I have not been able to resolve. I am using the same Domain User account with the same privileges on both systems...



The first error I receive in my SQL Server error logs is:



Message
Error: 14151, Severity: 18, State: 1.



Rapidly followed by the following error message:



Message
Replication-Replication Merge Subsystem: agent SOURCE-DATABASE-MERGE-DESTINATION-16 failed. The merge process could not initialize the subscription. Ensure that the subscription registration exists at the publisher, and reregister the subscription if necessary.



From within the Replication Monitor I look into the subscription and I can see the following error message:



Command attempted:

{call sys.sp_MSmergesubscribedb ('true', 0) }



Error messages:

The merge process could not initialize the subscription. Ensure that the subscription registration exists at the publisher, and reregister the subscription if necessary. (Source: MSSQL_REPL, Error number: MSSQL_REPL-2147201011)
Get help: http://help/MSSQL_REPL-2147201011



INSERT failed because the following SET options have incorrect settings: 'ANSI_PADDING'. Verify that SET options are correct for use with indexed views and/or indexes on computed columns and/or query notifications and/or xml data type methods. (Source: MSSQLServer, Error number: 1934)
Get help: http://help/1934



I have looked into the help links from above, researched codes and also browsed this forum and others to no avail so far. Any help or suggestions would be greatly appreciated! THANKS!