Windows 7 Backup Complains it can't backups two non-existent folders

I am running scheduled daily backups using Windows 7 Backup on my Windows 7 Ultimate Laptop. It constantly gives me the following errors in the backup log:

Backup encountered a problem while backing up file C:\Users\sqlExpress2k8\Contacts. Error:(The system cannot find the file specified. (0x80070002))
Backup encountered a problem while backing up file C:\Users\sqlExpress2k8\Searches. Error:(The system cannot find the file specified. (0x80070002))

The user sqlExpress is the user that my sql server processes run as. These folders do not actually exist on my file system, and there have been several reboots to rule out any issues of stuck file handles etc.

Update: I installed Denali CTP, and ran it as a different user and I get error messages for the same two folders in the users home directory. I recently reinstalled windows on my laptop and still get the error for the sql service user:

Backup encountered a problem while backing up file C:\Users\sql_denali_service\Contacts. Error:(The system cannot find the file specified. (0x80070002))
Backup encountered a problem while backing up file C:\Users\sql_denali_service\Searches. Error:(The system cannot find the file specified. (0x80070002))

Try turning the SQL server process(es) off and re-running the backup. SQL may be telling Windows that those folders need to be backed up (even though they aren't there).