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Incremental Exchange backup problem

I am managing a Windows Small Business 2003 server. I need to do incremental Exchange backups to keep the size of backups down (as we are copying these backups offsite over DSL). Using NTbackup I can copy and do normal backups fine, but when I try an incremental or differential backup, I get the following:

Backup Status
Operation: Backup
Active backup destination: File
Media name: "MFP1-WK Exchange Diff 22nd.bkf created 6/22/2004 at 1:00 AM"

Error: MFP1-WKMicrosoft Information StoreFirst Storage Group is not a valid drive, or you do not have access.

I get the same message if I try to do the job manually or schedule it. There are no errors in Event Viewer at all -- any ideas?

Check the circular logging setting on MFP1-WKMicrosoft Information StoreFirst Storage Group.

If circular logging is "on" then turn it off and recycle your Information Store service.

If circular logging is "off" then turn it "on." Recycle your Information Store service. Then turn it "off" and recycle the Information Store service again.

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