Hi Patty,
Thanks for your reply.
To answer your questions...
1. Do you have OS compression enabled in disk manager on the drive that holds the IS? I don't believe so, compression is not enabled on the drive, how do I check for "OS Compression?"
2. Are you backing up to disk? Yes External USB 2.0 drive formatted to NTFS.
3. Is that drive compressed? No.
4. What version of Backup Exec are you running? It is backup exec 11d build 6235.
5. If you are running 6235 do you have all of the HotFixes installed? Hot fix 2, hot fix 13, hot fix 15, hot fix 16, hot fix 19, and hot fix 20 are installed. When I run live update, I do not get any notifications that there are any other available hotfixes.