Got it! Thanks for the help.

As soon as I destroyed the objects I can now update all the rows in the table. I added the following:

EXEC @OLEResult = sp_OADestroy @FileID

EXEC...

select count(*) from backuptest where filesize is null --1820

I have added no "SET ROWCOUNT" statements and still it only updates 128 rows at a time. Is there a higher database...

SPN = Service Principal Name which is utilized by Kerberos authentication.

I also have the same issue. The only thing I have done was to create an active directory user account called "sqlmanager" and gave Administrator, Domain Admin, and Domain User...