57459: Acronis Backup Cloud / Acronis Backup Service: Physical Data Shipping backup fails with “The network location doesn’t exist”

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Symptoms

  1. You want to use Physycal Data Shipping and create an initial backup of a Windows XP or Windows Server 2003 machine to a USB flash drive (which is detected as a network share in Acronis software).
  2. Backup fails with:
    The network location doesn’t exist.

Solution

Please use solutions described in this Microsoft KB article.

Prior to applying solution 2 from the Microsoft KB, you might need to change the LAN Manager authentication level in group policy:

  1. Open Group Policy Editor: Start -> Search -> gpedit.msc
  2. In the Computer Configuration section click Windows Settings.
  3. Double-click Network Security: LAN Manager authentication level and select Send LM & NTLM Responses.
  4. Click Apply and OK.
  5. Reboot the computer and proceed as described in the Microsoft article.