This is the very first time I am posting, but I found a pattern.
After researching this for days. I found that everyone who is experiencing this error code 0x8100037 is a W7 user AND has Microsoft Security Essentials installed. Simply disabling Microsoft Security Essentials makes the back up go through with no issue.
What I also noticed is that every time I got this error code during the back up process, at the same time in the history tab of the Security Essentials I see the same action being taken, where its removing a Severe virus (at least it thinks its a virus)
Exploit:Java/CVE-2009-3867.MZ
Category: Exploit
Description: This program is dangerous and exploits the computer on which it is run.
Recommended action: Remove this software immediately.
Security Essentials detected programs that may compromise your privacy or damage your computer. You can still access the files that these programs use without removing them (not recommended). To access these files, select the Allow action and click Apply actions. If this option is not available, log on as administrator or ask the security administrator for help.
Items:
file:\Device\HarddiskVolumeShadowCopy50\Users\RB\AppData\LocalLow\Sun\Java\Deployment\cache\6.0\0\4d43e080-1782a588->vmain.class
According to Microsoft, this is a virus http://www.microsoft.com/security/portal/Threat/Encyclopedia/Entry.aspx?name=Exploit:Java/CVE-2009-3867.MZ&threatid=2147639445
Now, even though Essentials says it removed it, I still see this file in the directory, so I manually deleted it. I havent tried to rerun the backup with Essentials on, but can pretty much guess it will work. If not, at least this should point folks in the right direction on how to permanently rectify this issue.
RB