SQL Server 2008: Error 1934 while enabling the database for Merge Replication

Hello Everybody.

I am trying to use Merge Replication. When I try to enable the database for Merge Publication from - Replication > Publisher properties > Publication Database., system is giving an error message which is as below.

select failed because the following set options have incorrect settings: "ANSI_PADDING". Verify that SET options are correct for used with indexed views and/or indexes on computed columns and/or filtered indexes and/or query notifications and/or XML data type methods and/or special index operations.

Please help.

Thanks in advance

Abhishek Jadhav