This article might be helpful:
"Access Denied" Error Message When Trying to Start a Service in Windows 2000
While it addresses Windows 2000 the same will apply to Windows 2008.
It has to the way you configued the backup. Have you double checked that all permissions are correct and that the server can connect to the remote folder?
Can you copy files to it?
There was a bug like you describe in older beta builds and wasn't fixed until rc1. I haven't seen that in RTM and I can't duplicate it on any of my Windows 2008 servers.