Windows 7 backup problems

I use a smaller laptop with Windows 7 Pro and use the C drive for system software and have moved all my personal folders such as My Documents, Music etc to the D drive to save space. All applications are also stored on the D drive. The problem is can Windows backup personal folders moved in this way?
All attemps so far in using Windows backup have failed so I suspect that files outside the user profile will cause unknown file errors. In the setup wizard for backup only drive C is available when choosing folders and any relocated personal folders are not displayed. Also the drive backup always fails at the first attempt even when backing up selected files from the C drive.
As anybody managed to backup relocated folders outside of the C drive using Windows backup?

I relocated the folders using properties and then selecting location and choosing the D directory and choosing the path D:\username\name of folder. So all my personal folders are in the D directory.

I see what your getting at here. I use the user profile Martin. On the C drive this folder is a locked folder with the location C:\Users\Martin. All I have done is to simply create a folder on the D drive called Martin. Then using properties have relocated personal folders from the locked directory into this folder. This includes My Documents, Virtual Machines, My Music etc.
Is this not so common? Will it cause any problems from the Windows 7 viewpoint?

The problem going on here is you can move folders from your user profile such as My Documents, My Music etc but these relocated folders do not show up in the user profile directory. So backup only displays whats in your user profile not any relocated folders.
Yet if you opt to display this directory on the Desktop by pressing start and by right clicking your personal folder and selecting this option, then double clicking this actually displays all the relocated folders.
The main problem with backup apart from this is that it fails at first base when creating a shadow image - error code 0x80070002. I selected the backup to the internal D drive and choose what to save with no system backup but no luck.