I've seen this a lot, but haven't found a solution.
I have a fresh install of BE 12.5 on a 2003 server. All jobs are running fine except the System State job of the BE server. Robotic Library is attached directly to the BE server via SCSI. For the backup job I have only System State selected. I've tried it with and without Advanced Open File option selected for use. When selected, I set it to MS Volume Shadow Copy Service and Automatic - Allow VSS to select snapshot provider. I have tried Backup to tape and Backup to Disk, both start and hang at 'Snapshot Processing'. Viewing the job status shows no files/folders have been touched. Cancel fails and I must stop/restart services and kill bengine.exe to kill the job.
During and after the backup attmept, all VSS writers show Stable/No Error. I also recently applied the latest VSS patch KB940349 with no luck. During the troubleshooting process, I've upgraded all firmware and drivers on the server, etc. BE is fully patched.
I have a case open with Symantec, but after escalation, I haven't heard back in nearly 3 weeks. I'm hoping someone here can throw me a bone!
Thank you.