The scheduled backups worked for me last night so I will update the support ticket according but await a proper fix.

I think we have a solution. Seems to have worked on the test backups I have done but need to let the nightly ones run to confirm.

From the Tools menu, select Change Service Account and set this as the local administrator. Seems to correct the issue.

I have just opened a support case and emailed them the logs. Will update if I hear anything.

Have this issue as well on the 2 servers I upgraded to 7.0.

Only seems to affect the SQL and image backups as the continuous back we have running to the same NAS server is running fine, it is the nightly image backup that fails.