Because snapshot replication uses the distribution database
for storing only state information about the replication process,
and not the replication data itself (which is done in a file),
it is not typically necessary to tune SQL Server on the distributor.
The guidelines are listed here:
* Configure sufficient I/O capacity on the publisher, distributor, and subscriber
* Configure the distributor to keep the snapshot on the publisher system
* Configure the distributor and publisher on the same system
* Increase the number of BCP threads
Source: Microsoft SQL Server 2000 Administrator's Companion Book