To enable backups to network drives, perform the following steps: The SQL Server service must be started using

a domain user account to access any resources on a remote computer. Verify that the MSSQLServer service is started under a domain account that has write access to both the Windows NT Server share and its underlying partition (if the partition is formatted with the Windows NT file system, or NTFS). In Control Panel, double-click the Services icon. Select the MSSQLServer service and then click Startup. Examine the startup options for the service and verify that This Account is selected and that a valid domain account is supplied in the form Domain_Name\Domain_account (with the correct password). NOTE: If you changed the service to run under a domain account, you must stop and restart the MSSQLServer service. Verify that the account specified has write access on the Windows NT share to which you are backing up, as well as the underlying partition (if the partition is formatted as NTFS). To do this, perform the following steps: Right-click the share name in Windows NT Explorer. Click Sharing on the shortcut menu. On the Security tab, click Permissions.
Msg 3201, Level 16, State 1, Line 1 Cannot open backup device 'SibelLogBack(\\gratintrasrv02\SIEBELTransactionBackup\Sibel_Log_070409.bak)'. Operating system error 5(error not found). Msg 3013, Level 16, State 1, Line 1 BACKUP LOG is terminating abnormally.

http://support.microsoft.com/kb/207187

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