I've been around the forums looking for a solution to this. The general solutions are making sure boundaries are directed to the correct DP. I've made sure everything has been setup the correct way (Though I say that very loosely).

This was recorded in the distmgr.log as I redistributed the content for another go:

Adding package 'NMW00009' to package processing queue.  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:48.730+420><thread=9140 (0x23B4)>
~Currently using 0 out of 3 allowed package processing threads.  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:48.762+420><thread=9140 (0x23B4)>
~Started package processing thread for package 'NMW00009', thread ID = 0x29DC (10716)  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.262+420><thread=9140 (0x23B4)>
~Sleep 3600 seconds...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.267+420><thread=9140 (0x23B4)>
STATMSG: ID=2304 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=SRVSCCM.TEST.DOMAIN.ORG SITE=NMW PID=9164 TID=10716 GMTDATE=Thu Sep 03 02:46:49.272 2015 ISTR0="NMW00009" ISTR1="" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=400 AVAL0="NMW00009"  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.276+420><thread=10716 (0x29DC)>
~Retrying package NMW00009  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.280+420><thread=10716 (0x29DC)>
Start updating the package NMW00009...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.280+420><thread=10716 (0x29DC)>
CDistributionManager::IsSnapshotReady: Validating content with ID 16777237 ...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.285+420><thread=10716 (0x29DC)>
~CDistributionSrcSQL::UpdateAvailableVersion PackageID=NMW00009, Version=2, Status=2300  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.288+420><thread=10716 (0x29DC)>
Taking package snapshot for package NMW00009  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.295+420><thread=10716 (0x29DC)>
Snapshot processing content with ID 16777237 ...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.308+420><thread=10716 (0x29DC)>
Taking snapshot for content Content_2ceb042c-4605-4aee-a3e5-4fc387575be7.1 from source \\SRVSCCM.test.domain.org\S$\Applications\Reader DC 2015\2015.007.20033\  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:49.312+420><thread=10716 (0x29DC)>
~Currently using 1 out of 3 allowed package processing threads.  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.284+420><thread=9140 (0x23B4)>
~Sleep 3600 seconds...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.286+420><thread=9140 (0x23B4)>
The size of content is 223157 KB  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.815+420><thread=10716 (0x29DC)>
Content definition already exists: \\?\S:\SCCMContentLib\DataLib\Content_2ceb042c-4605-4aee-a3e5-4fc387575be7.1  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.816+420><thread=10716 (0x29DC)>
Writing package definition for NMW00009  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.921+420><thread=10716 (0x29DC)>
CreateFileW failed for \\?\S:\SMSPKGSIG\Content_2ceb042c-4605-4aee-a3e5-4fc387575be7.1.tar  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.928+420><thread=10716 (0x29DC)>
FileOpen failed; 0x80070003  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.928+420><thread=10716 (0x29DC)>
CContentDefinition::CreatePackedSignature failed; 0x80070003  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.928+420><thread=10716 (0x29DC)>
~ TakeContentSnapshot() failed. Error = 0x80070003  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.929+420><thread=10716 (0x29DC)>
~The source directory doesn't exist or the 'Configuration Manager' service cannot access it, Win32 last error = 3  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.929+420><thread=10716 (0x29DC)>
STATMSG: ID=2361 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=SRVSCCM.TEST.DOMAIN.ORG SITE=NMW PID=9164 TID=10716 GMTDATE=Thu Sep 03 02:46:54.929 2015 ISTR0="\\SRVSCCM.test.domain.org\S$\Applications\Reader DC 2015\2015.007.20033\" ISTR1="ScopeId_D264147A-65C9-4AF4-96DB-17BF08849A11/DeploymentType_ff7a316b-72d5-410d-bc35-5f6a3272d180/2" ISTR2="Content_2ceb042c-4605-4aee-a3e5-4fc387575be7" ISTR3="30" ISTR4="95" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=400 AVAL0="NMW00009"  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.929+420><thread=10716 (0x29DC)>
Failed to take snapshot for Content with ID 16777237  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.930+420><thread=10716 (0x29DC)>
~Failed to take snapshot of one or more contents in package NMW00009  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.930+420><thread=10716 (0x29DC)>
~CDistributionSrcSQL::UpdateAvailableVersion PackageID=NMW00009, Version=1, Status=2302  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.931+420><thread=10716 (0x29DC)>
STATMSG: ID=2302 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_DISTRIBUTION_MANAGER" SYS=SRVSCCM.TEST.DOMAIN.ORG SITE=NMW PID=9164 TID=10716 GMTDATE=Thu Sep 03 02:46:54.944 2015 ISTR0="Adobe Acrobat Reader DC" ISTR1="NMW00009" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=1 AID0=400 AVAL0="NMW00009"  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.944+420><thread=10716 (0x29DC)>
~Failed to process package NMW00009 after 5 retries, will retry 95 more times  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.945+420><thread=10716 (0x29DC)>
~Exiting package processing thread for package NMW00009.  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:54.945+420><thread=10716 (0x29DC)>
~Currently using 0 out of 3 allowed package processing threads.  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:59.964+420><thread=9140 (0x23B4)>
~Sleep 1825 seconds...  $$<SMS_DISTRIBUTION_MANAGER><09-02-2015 19:46:59.965+420><thread=9140 (0x23B4)>

It mentions that the Distribution Manager does not have sufficient rights to the source directory. I know for certain it does. The source directory is on a local drive with full rights to the local computer account (SCCM server).

It is not a disk space issue.

I hope the logs from distmgr help. I'm new to SCCM and trying to learn the ropes. Help on this would be wonderful!

open your DP and see if this path exists

S:\SMSPKGSIG\Content_2ceb042c-4605-4aee-a3e5-4fc387575be7.1.tar

logs say... cannot find path specified... make sure the content is available

"The general solutions are making sure boundaries are directed to the correct DP. "

Not at all -- distributing content to DPs has absolutely nothing to do with boundaries.

This doesn't look to be an issue accessing the content but looks to be an issue writing the content to the DP.

Is this an update to existing package/application?

Do you have appropriate AV exclusions in place or have you tried simply disabling your AV and testing again?

Thanks for the replies guys. I actually got passed the issue. I removed everything from the DP and then re-added them back. The only thing I did aside from that was uncheck "Require the site server to initiate connections to his site system" in the Site System properties.

I checked that location and the file is there but the name wasn't the same:

Content_ec1ae6bc-3be4-4f98-9820-47c2e5a061d0.1.tar

The one from the logs:

Content_2ceb042c-4605-4aee-a3e5-4fc387575be7.1.tar

Probably had something to do with it.

That option has nothing to do with content distribution so it is more likely the removal of all content cleaned up something.