"ALSO, VERY IMPORTANT: know that if you do not propogate changes on one of the sites, your master sites are OUT-OF-SYNC! What does this mean to your business??? "

These are Master tables(Inventory) which will be replicated from DB-2 to DB-1.

So having them 'out of sync' is acceptable.

One more question:

What will happen, If you have a table on DB-1 and try to have a snapshot replication enable between DB-1 and DB-2. What ever changes happen on DB-2 be refreshed to DB-1. Can the snapshot replication be enabled....as I already have the tables in the DB-1.