I've installed the Azure Backup Client (Version 2.0.9052.0) on to a server 2008 R2 build.
when I try and run the backup it starts to run then fails with the following error message:
Backup could not be started because of virtual hard drive NO_Param. Ensure that the scratch space configured for backup is located in an unencrypted and uncompress folder. Restart Virtual Disk service and retry backup operation. (0x086c5)
The Scratch folder is uncompress and unencrypted. I've restarted the Virtual Disk services and restarted the server several times. I've uninstalled and reinstalled the client 3 times and located the scratch file onto different disk location and every time I run the backup it comes back with the same error message.