If you are trying to backup a Windows 2008 Server that is not a R2 version then there are some limits as to what you can do.
Microsoft said: The Target for Windows Server 2008, specifies the storage location for backups. Requires you to specify a destination for backups as a disk identifier (see Remarks). The disk is formatted before use, and any existing data on it is permanently erased.
For Windows Server 2008 R2 and later, Specifies the storage location for backups. Requires you to specify the location as a disk, volume, or Universal Naming Convention (UNC) path to a remote shared folder (\\<servername>\<sharename>\). By default, the backup will be saved at: \\<servername>\<sharename>\WindowsImageBackup\<ComputerBackedUp>\. If you specify a disk, the disk will be formatted before use, and any existing data on it is permanently erased. If you specify a shared folder, you cannot add more locations. You can only specify one shared folder as a storage location at a time.
This is limits in Windows not LabTech.Microsoft said: The Includes for Windows Server 2008, specifies the comma-delimited list of volume drive letters, volume mount points, or GUID-based volume names to include in the backup.
For Windows Server 2008 R2and later, Specifies the comma-delimited list of items to include in the backup. You can include multiple files, folders, or volumes. Volume paths can be specified using volume drive letters, volume mount points, or GUID-based volume names. If you use a GUID-based volume name, it should be terminated with a backslash (\). You can use the wildcard character (*) in the file name when specifying a path to a file.
Microsoft requires that a backup only goes to a physical disk and not a network share so network shares will not work here.
Also the disk that is used as a target must not be used for anything else. The backup engine will formate and overwrite any data on this drive.
You do not need a Username or password to do backups and it will fail if you try to use on.
Must use only Disk identifyer ID as target
Here is what it should look like in LabTech
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