I also have the same issue. I have tried running the backup job with the NTFSDisable8dot3NameCreation registry setting set to 0 (which is the default) and I have tried the job with the setting set to 1. (I rebooted the server in between the attempts.
I'm running Windows 2003 Server, Standard Edition, SP2.
If I bring up the DB2CMD window and attempt to run the same commands as the BackupExec generated script, I get the same problem. If I quote the command, it works. Windows 2003 Server requires that the command be put in quotes.
"C:\Program Files\IBM\SQLLIB\bin\db2.exe" -v terminate
I certainly don't want to reinstall DB2 (as the default installation directory is "C:\program files\ibm..."). Changing the registry setting does not solve the problem.
Any further suggestions?