000350 : Input workspace does not support checkouts
The input workspace does not support checkouts. An ArcSDE geodatabase must be used as the source for replica creation. For checking out replicas, the destination can be either an ArcSDE, file, or personal geodatabase. In all cases, the geodatabase must have a minimum release of ArcGIS 8.3.
Ensure that you have specified a workspace that supports checkouts. For more information, see Replication types.