Yes in Simple recovery we cant do the transactional log, and shrink the database and see any deadlock process and kill the process i will help bit fast to backup.

Even i installed SQL Server 2008 in 64 bit, but if i connect to the server, its showing the error like "some database is taking backup and restore" and all...

Check all the privileges are correct and go to the low level and check the things like configuration manager stc..and for testing purposes take the backup in 2000 and restore...