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Thank you for your post into the forum and sorry that you have encountered this problem.
The error you have encountered is an intermittent problem and one that we have had difficulties in-house reproducing.
I have added your forum post details to an existing Bug Report and have requested the development team investigate this issue.
Mnay Thanks
Eddie
Eddie Davis
Product Support Engineer
Red gate Software Ltd
e-mail: support@red-gate.com
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Following the instructions in the link below allows me to install SQL Backup on a named instance, but not before having to reboot the entire Windows server after making the registry change because the SQL Backup Agent service is stuck in a "Starting" mode.
http://www.red-gate.com/supportcenter/Content.aspx?p=SQL%20Backup&c=knowledgebase%5cSQL_Backup%5cKB200703000016.htm
You guys have got to fix this. Having to reboot my entire production server for this is not plausible. :x