I have the exact same issue as here:
Microsoft Windows [Version 6.0.6001]
Copyright (c) 2006 Microsoft Corporation. All rights reserved.
C:\>wbadmin start systemstatebackup -backuptarget:D:
wbadmin 1.0 - Backup command-line tool
(C) Copyright 2004 Microsoft Corp.
Starting System State Backup [5/12/2011 1:28 PM]
Retrieving volume information...
This would backup the system state from volume(s) Local Disk(C:),New Volume(D:)
to D:.
Do you want to start the backup operation?
[Y] Yes [N] No y
Creating the shadow copy of volumes requested for backup.
Creating the shadow copy of volumes requested for backup.
Creating the shadow copy of volumes requested for backup.
Creating the shadow copy of volumes requested for backup.
Creating the shadow copy of volumes requested for backup.
Identifying system state files to backup (This may take a few minutes)...
Found (2523) files
Summary of backup:
------------------
Backup of system state failed [5/12/2011 1:29 PM]
Log of files successfully backed up
'C:\Windows\Logs\WindowsServerBackup\SystemStateBackup 12-05-2011 13-28-35.log'
Log of files for which backup failed
'C:\Windows\Logs\WindowsServerBackup\SystemStateBackup_Error 12-05-2011 13-28-35
.log'
Enumeration of the files failed.
Access is denied.
From the log:
Error in backup of C:\documents and settings\all users\ during read: Error [0x80070005] Access is denied.
In the linked post, Sandeep explains what the problem is, but not how to fix it. Thank you in advance for any input you might have!
-Rock