Thanks for getting back. I think that we figured out the problem. It could be one of 2 things, which we are going to check.
1 The backup job could be corrupt. or
2 The system state could be corrupt, therefore causing the errors.
I am going to try 1st to redo the backup and then do an inplace upgrade on the server. We have had an issue with this server, which make me think that it could be a corrupt system state.
Thanks
Russell