I have made some slight progress, I am now able to connect the SSIS package to both servers (i have created 2 connection config files which store the username/passwords for...

Yes,

the ConnectionManagerType = SMOServer for both connections

Thanks for your responses, I have checked and sp2 is installed.

Enterprise Edition on Windows NT 5.2 (Build 3790: Service Pack 2)

I am trying to use the Transfer SQL Server Objects...