WindowsImageBackup must be in the root, not in another folder named Backup or anything else.
This is a problem for many with Windows 7 Backup imaging. You can file away images but have to put them back into the root of the drive to be found. For example, on my external I have seven folders holding files and image backup for each computer here.
When I want to have the booted Windows 7 repair CD or DVD reimage a computer, I have to spill the WindowsImageBackup folder out of the correct external folder into the root of the external to have it discoverable. And it has to be titled exactly WindowsImageBackup.
The network file path is another problem. Sometimes I will spend an hour getting it typed just right to where it will work. Yet the network drivers
in the CD/DVD will copy via network even better sometimes than those in Windows 7. Go figure.
I can see now why many have gone back to Acronis which lets you name file as you please and finds it by browsing.
It almost seems like they don't want people to like this feature breakthrough in Windows 7 too much.