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SQL Server 2000 supports three distinct types of replication: snapshot, transactional, and merge, each of which has its own purpose.
Snapshot Replication
Snapshot replication simply takes a "snapshot" of the data on one server and moves that data to another server (or another database on the same server). After the initial synchronization snapshot, replication can refresh data in published tables periodically—based on the schedule you specify. Although snapshot replication is the easiest type to set up and maintain, it requires copying all data each time a table is refreshed.
Between scheduled refreshes, data on the publisher might be very different from the data on subscriber. In short, snapshot replication isn't very different from emptying out the destination table(s) and using a DTS package to import data from the source.
Transactional Replication
Transactional replication involves copying data from the publisher to the subscriber(s) once and then delivering transactions to the subscriber(s) as they occur on the publisher. The initial copy of the data is transported by using the same mechanism as with snapshot replication: SQL Server takes a snapshot of data on the publisher and moves it to the subscriber(s). As database users insert, update, or delete records on the publisher, transactions are forwarded to the subscriber(s).
To make sure that SQL Server synchronizes your transactions as quickly as possible, you can make a simple configuration change: Tell it to deliver transactions continuously. Alternatively, you can run synchronization tasks periodically. Transactional replication is most useful in environments that have a dependable dedicated network line between database servers participating in replication. Typically, database servers subscribing to transactional publications do not modify data; they use data strictly for read-only purposes. However, SQL Server does support transactional replication that allows data changes on subscribers as well.
Merge Replication
Merge replication combines data from multiple sources into a single central database. Much like transactional replication, merge replication uses initial synchronization by taking the snapshot of data on the publisher and moving it to subscribers. Unlike transactional replication, merge replication allows changes of the same data on publishers and subscribers, even when subscribers are not connected to the network. When subscribers connect to the network, replication will detect and combine changes from all subscribers and change data on the publisher accordingly. Merge replication is useful when you have a need to modify data on remote computers and when subscribers are not guaranteed to have a continuous connection to the network.