Both SQL Agent and MSSQLSERVER services start with the same account ..that account has local admin rights. Job is being run right at the server (remoting in using same account...

Sorry for the delay ...here's the script:

-- Script generated on 7/21/2004 7:15 AM

-- By: NTGROUP\mts_user

-- Server: PCASRVR\PCA

BEGIN TRANSACTION           

  DECLARE @JobID BINARY(16) 

  DECLARE @ReturnCode INT   

  SELECT @ReturnCode =...

tried that already ...that has same results. 

That's it in the log ...(last entry)

job owner is mts_user (which is domain admin account, and also what the services start up as logon account)

job history: The job failed.  The...

Okay ..user is Domain Admin ...is also local admin on server.  Has every priv. on db's.  Can run the backup from EM, can run a backup in QA ..just not...