ATI Home 2009 won't backup without errors anymore

Image backup completes with errors. Typical error:
"1 Information 2/8/2011 12:39:47 AM Operation My Computer Backup4 started.
2 Warning! 2/8/2011 12:39:47 AM Priority changed to Low.
3 Information 2/8/2011 12:39:49 AM Analyzing partition 0-0...
4 Information 2/8/2011 12:39:49 AM Analyzing partition D:...
5 Information 2/8/2011 12:39:51 AM Analyzing partition C:...
6 Information 2/8/2011 12:39:53 AM Analyzing partition G:...
7 Information 2/8/2011 12:39:55 AM Analyzing partition 1-6...
8 Information 2/8/2011 12:39:58 AM Analyzing partition 0-0...
9 Information 2/8/2011 12:39:58 AM Analyzing partition J:...
10 Information 2/8/2011 12:39:58 AM Analyzing partition F:...
11 Information 2/8/2011 12:39:58 AM Analyzing partition H:...
12 Information 2/8/2011 12:39:59 AM Analyzing partition I:...
13 Error 2/8/2011 12:39:59 AM User name or password for the remote resource {0} is incorrect. Please check user name and password and type it again.
14 Error 2/8/2011 12:40:00 AM (0xB03E9)
Tag = 0x65E40AA0B4874B4
Specified file does not exist. (0x40011)
Tag = 0xD460020904AF28E6
15 Error 2/8/2011 12:40:00 AM Operation has completed with errors."

This backup attempt is to an external hard drive. I get similar results when trying to backup to internal drive as well. I have not defined a name/password up to this point so error is a mystery to me.

Also scheduled attempts to backup email, system state, application settings, and data yield this error:

"Error Scheduler is unable to run the task”} with GUID F63B1129-0A85-48B1-A07A-A56F5BA3C1D9} because of error 1327(logon failure: user account restriction. Possible reasons are blank passwords not allowed, login hour restrictions, or a policy restriction has been enforced."

Any suggestions will be appreciated.