Solved
Backup Exec 2012 Media Check Failed
I have a NAS attached and BE 2012 finds it and it is online however, whenever I do a test run of the job it fails at the media check part.
Ignore the test run result and run the actual job towards the disk storage.
Similar issue here: https://www-secure.symantec.com/connect/forums/test-run-fails-1
EDIT: Another option is to disable sufficient storage space checking and media availability checking while running the test job. See the attached screen shot.
