Windows backup fails

Making a complete backup of the C: drive to the D: drive on Vista x64. Both internal sata drives.
While saving the backup, get this message from the backup: Failed to create the shadow copy on the storage location.(0x807800340) The shadow copy provider had an error. Please see the application and system logs for more information(0x80042306)

From the event logs:

Backup started at '5/10/2008 6:27:38 PM' failed to backup volume(s) '' with following error code 2155348020 (Failed to create the shadow copy on the storage location.). Please rerun backup once issue is resolved.

Volume Shadow Copy Service error: Unexpected error DeviceIoControl(\\?\Volume{deb3433b-15e9-11dd-af65-806e6f6e6963} - 0000000000000114,0x0053c008,0000000000684810,0,0000000000685820,4096,[0]). hr = 0x80070079.

Operation:
Processing EndPrepareSnapshots

Context:
Execution Context: System Provider


Following the events only led to one article on Windows 2008 server. Any suggestions on tracking down or fixing this error.

Maybe a bios problem, is it up to date?

It is a Gigabyte GA-P35-D3SL with the f7 bios.
That is the latest except for two betas that support the latest processors.

I do think it it could be a registry or setup problem as it appears to be trying to make a shadow copy of the D: drive although I only selected the C: drive. Only the C: drive is selected for system restore.