The Snapshot Folder page appears in the Configure Distribution Wizard and in the New Publication Wizard. The location you specify for the snapshot folder will be used as the default for all Publishers enabled in this wizard (the default snapshot folder does not apply to Publishers that are later enabled using the Distributor Properties dialog box). You can override this default for any Publisher on the Publishers page of the Configure Distribution Wizard or the Distributor Properties dialog box.
The snapshot folder is simply a directory that you have designated as a share; agents that read from and write to this folder must have sufficient permissions to access it. For more information about securing the folder appropriately, see Securing the Snapshot Folder. Prior to implementing replication, test that the replication agents will be able to connect to the snapshot folder. Log on under the account that will be used by each agent and then attempt to access the snapshot folder.