Copy Database problems SP2

Last night I installed SQL Server 2005 SP2. The install went fine and everything seemed to be fine. However a scheduled Database Copy job failed. I deleted the current job and recreated it using the "Copy Database" wizard. I used all the default values with the following exceptions: I used the "SQL Management Object Method" instead of the detach database and I use the "drop the database on destination". I tell it to run the job immediately and the job runs fine.

I then try to run the job again from SQL Agent -> jobs and it fails. I run it again and it runs fine. The pattern repeats, succeed -> fails -> succeed -> fails....

Here is the error message I receive in the history:

Message
Executed as user: EVAASSQLDEV\sqlagent. ...00.3042.00 for 32-bit Copyright (C) Microsoft Corp 1984-2005. All rights reserved. Started: 9:30:06 AM Progress: 2007-03-30 09:30:07.41 Source: EVAASSQLDEV_evaassqldev_Transfer Objects Task Task just started the execution.: 0% complete End Progress Error: 2007-03-30 09:30:16.14 Code: 0x00000000 Source: EVAASSQLDEV_evaassqldev_Transfer Objects Task Description: Alter failed for Database 'PathwaysNewDev_new'. StackTrace: at Microsoft.SqlServer.Management.Smo.SqlSmoObject.AlterImpl() at Microsoft.SqlServer.Management.Smo.Database.Alter(TerminationClause terminationClause) at Microsoft.SqlServer.Dts.Tasks.TransferObjectsTask.TransferObjectsTask.SwitchDatabaseAccess(Database database, DatabaseUserAccess desiredAccess) at Microsoft.SqlServer.Dts.Tasks.TransferObjectsTask.TransferObjectsTask.CheckLocalandDestinationStatus(Database srcDatabase, DatabaseInfo dbDetail) at Mic... The package execution fa... The step failed.
How about privileges for that SQLAgent service account on both the servers?|||It is the same server. Just copying a development db to a testing db. One more thing though, when it fails it puts the destination DB in single user mode. I'm guessing it is trying to get exclusive control over the destination.