I was getting this error under the File Replication Service Logs on a Windows Server 2008 R2 Domain Controller. Realized new Group Policies created on DC1 were not being replicated to DC2. Tried different tools and others to fix replication but nothing worked.

Found out the SYSVOL was corrupted. Copied the new Policies manually from DC1 to DC2 and followed these steps:

• Open the Registry Editor
• Navigate to HKLM\SYSTEM\CurrentControlSet\Services\Ntfrs\Parameters
• Create a new REG_DWORD called “Enable Journal Wrap Automatic Restore”
• Give it a value of 1

• Stop and start the NTFRS Service:
  • net stop ntfrs
  • net start ntfrs
• Monitor the File Replication Service Log. You will get this warning:

• Then, after 5 minutes when the Replication starts, you will get this warning, followed by the next 3 information entries:

The problem is fixed when you see the last entry in the NTFRS Log.  The whole process can take 5-20 minutes depending on replication.

DO NOT forget to set the registry entry back to zero, otherwise the fix will be applied every time the NTFRS service is restarted.