Also while looking for something else..
Does your server domain account have these permissions on the local server:
Setting Required Permissions
To perform its functions, SQL Server Agent must be configured to use the credentials of an account that is a member of the sysadmin fixed server role in SQL Server. The account must have the following Windows permissions:
Adjust memory quotas for a process
Act as part of the operating system
Bypass traverse checking
Log on as a batch job
Log on as a service
Replace a process level token
CEWII
That is a really good point. In SQL Server 2005, SQL Server Configuration Manager adds those rights to the account when it is defined, but not so when done through the services mmc in Windows.
Joie Andrew
"Since 1982"