Vista - Backup to network drive.

I am having issues running backup for files to a network drive. everything is
ok until I reach the browser to select bacup location. I enter my user name
and password then the error appears.

'The network share could not be accessed for the following reason:

Cannot create a file when it already exists. (0x800700B7)

Please ensure that the network location is valid.'

I have checked and ensured no other files are present on the location but
same error occures.

Any ideas?