Does it work if you backup the sql server to a local drive\folder? Specifically.... a folder on the same computer as the SQL Engine?
Most of the time, these types of issues are permissions related. SQL Server (usually) runs under a different account than the one you log in with. It doesn't matter if you have the appropriate permissions to the remote computer, what's important is whether SQL Server does.
When you install sql server, it defaults to running under a "local system" account, which usually does NOT have permission to other computers on the network. To see the account that SQL Server is running under...
On the SQL computer,
Click Start -> run
Type: services.msc
scroll down to MSSQLSERVER (for SQL2005, the service will be named "SQL Server")
Right click -> Properties
Click "Log On" tab.
You can change the account that SQL Server uses to log on. If you decide to do this, I encourage you to make a new windows (Active Directory) account just for SQL Server. This account should have an extremely strong password that never expires. Also, give this account the minimum permissions possible to do whatever it is that you need it to do.
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George
"The great things about standards is that there are so many to choose from." - Fortune Cookie Wisdom