Event ID 2303, 2344 - Failed to create virtual directory on the defined share or volume on distribution point. SMS Distribution manager failed to process package "xxxxxx".
From the SCCM site servers distmgr.log:
CWmi::GetObject():GetObject() failed. - 0x80041001
ERROR CreateVirtualDirectory: Failed to update virtual directory SMS_DP_SMSPKGD$. error = IDispatch error #3585
The description to the status message (2344) suggest the problem relates to IIS configuration. Looking at the distribution manager log more specifically it would appear to be a WMI error possibly affecting access to IIS. The error 0x80041001 is described as a "Generic failure".
To answer the question you generally see the same error with WMI when you install software with MOF/MFL files associated, I note that MOFCOMP throughs the same "generic" error (0x80041001) e.g. Invalid Class when compiling sometimes.
The solution that worked for me was to reboot the server (2003) and allow WMI to repair itself. This should be the first approach rather that trying to rebuild WMI as recommended for a similar issue affecting SCOM.
I thought I would add this as I could find no other reference to this problem online and feel sure it will affect someone else.