Exchange 2003 Backup job ends in "Recovered status", places Job on hold

After a mailbox item backup using Backup exec 11d for Exchange server 2003, the job finishes in a recovered status and automatically places the job on hold. The Job history item is greyed out and not red, plus the job seemed to have finsihed successfully but has an error

0xe00081d9 - The backup Exec job engine system service is not responding.

 

All services are started well.

 

 

This was an inplace upgrade from BackupExec 10 to 11d. The Jobs were created with v. 10

 

Rob