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Why is TIH 2011 moving my backups to an unknown offsite location?

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I have been running TIH 2011 for quite some time now and have recently discovered that TIH is storing my backups somewhere other than my target network drive. Specifically, in some internet location.
My target backup device is a 1 Tb Freecom Network Hard Drive. I do not and have never used the Acronis Online backup application. I recently attempted to delete some old archive backups and was extremely surprised to be advised that Win7 couldn't find them on the HD, even although they were plainly visible in the Explorer window. Worse, the directory size which was reported was of the order of 4.60 Tb in size. Plainly impossible. (See attached screen shots)
I would be obliged if someone could a) tell me where my files are being stored, b) why I was given no intimation that this was happening, and c) How this squares with the Data Protection Act.
To say that I am annoyed is a complete undrstatement. If, as appears, TIH has moved my files to a location unknown, without my permission, and in a state of indeterminate security, I feel sure that this will prove of great interest to my lawyer. I would appreciate a prompt response as, I am sure you will be aware, tn this case, time is of the essence.
See attachments.

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James,

What is the normal drive letter for the network drive if mapped?

Do the archives/images appear on your networkd drive if viewed in your file manager?

Check in your my documents folder and see if there are any images appearing in the 'my backups' folder as this is where TIH defaults to if it can not find the nominated drive.

The misreporting of the directory size, what does Windows Explorer show it to be?

From your two snap shots I can't see why you believe your images are disappearing in to cyberland.

Unless your system has been hacked in some way I can not see how TIH can place your files somewhere on the Internet. OLB is a separate interface and you require an account to gain access.