I got the same error. Environment: Win 8 Pro 32 Bit, i do upgrade from Win7 Ultimate. Backup on Zyxel NSA320.
Same for me saving to a NAS drive. I used "Let me choose settings and deselected anything that I had transferred to the Nas. and also no system image. It completed but still tells me it couldn't back up files that are on the Nas, but at least I have a backup.