John - strangest thing - the backups since this afternoon started working without error - I think the account used to contact the DFM withint he job was incorrect. I tried to import a job config I created in 3.6P1 and when I imported it I was never asked to re-enter the passwords. I think that was required anyhow. I'll let you know if the problem persists.
No, I intentionally didn't upgrade. We had a bug using v3.6P1 and support told us since we just recently started using SC to just uninstall and re-install 4.0.0c fresh. What "troubled" me was that SC took the imported file without "problems" - as if it didn't manually check the cred's it imported to see if they work before allowing me to continue - which in my opinion is a "logical bug".