The instance is definitely working.

Here is some more info..

If I create a job with the script to run a backup on all DBs and schedule this job, it works. The SQL Server Agent does call this job and it also works if I run manually (Start Job at Step).

Now, if I create a Maintenance Plan that will do the same thing, it doesn't work!.. even if I call this job manually.. Even if I point the location of the backup to the local machine.

So, I am trying to find out what the difference is when I create a job and when the maintenance plan creates it..

Hope I was able to shed some light now..

Thanks!!