What causes SqlServerWriter to fail when running windows server backup on a server with Sql Express?

Equipment:

I have a Dell PowerEdge T410 with 2 E5506 processors, 32GB of Ram and running Windows Server 2008 R2. It hosts:

• AD
• DNS
• DHCP
• SQL Express for an Accounting Software Package
• Quickbooks

Issue:

Starting about a week ago my nightly backups with windows server backup are failing, citing a failed volume shadow copy service. After looking at my vsswriters I found that SqlServerWriter is failing everytime I run a backup with a State 8 Failed, non-retryable error. Also, system writers is put into state 5, waiting for completion.

I am getting the following events in my event log:

SQLVDI - Event ID 1

SQLVDI: Loc=SVDS::Open. Desc=Open(control). ErrorCode=(2)The system cannot find the file specified. . Process=1312. Thread=4208. Server. Instance=FOUNDATION. VD=Global{4CE2D39D-9885-4864-9698-5234A0CCB4CE}5.

MSSQL$DBNAME Event ID 3201

Cannot open backup device '{4CE2D39D-9885-4864-9698-5234A0CCB4CE}7'. Operating system error 0x80070002(The system cannot find the file specified.).

MSSQL$DBNAME Event ID 3041

BACKUP failed to complete the command BACKUP DATABASE databasename. Check the backup application log for detailed messages.

SQLWriter Event ID 24583

The description for Event ID 24583 from source SQLWRITER cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

Troubleshooting Steps Taken So Far:

1. Restarting the service returns it to a stable state, but it fails on the next backup.
2. Multiple reboots of the entire server have had no effect on the problem.
3. Shutting down the sql server allows a successful backup, but I believe that is because the SqlServerWriter is not used in this instance.

What is the next best step in troubleshooting this problem?