backup location doesnt contain any backup

Hello, i have a Win2008 R2 server that wont restore from WindowsBackup, heres what i did
1. created a full backup of c,d,e include BMR and system state (everything except the backup drive itself (1tb WD USB)
2. plug drive into another spare identical server to restore to
3. start backup > recover > another computer > choose the drive i just backup up to > next > error "the backup location does not contain any backup. specify another location

and thats it, the backup completed ok and the files are all there on the disk (vhd) yet the error message remains

tried plugginto another computer and create a network share, then access it via \\ but same errors as above, backup not found, backup settings are all default