File Replication Service is initializing the system volume with data from another domain controller. Computer %1 cannot become a domain controller until this process is complete. The system volume will then be shared as SYSVOL.
To check for the SYSVOL share, at the command prompt, type:
net share
When File Replication Service completes the initialization process, the SYSVOL share will appear.
The initialization of the system volume can take some time. The time is dependent on the amount of data in the system volume, the availability of other domain controllers, and the replication interval between domain controllers.