Windows Server Backup "Reading Data; please wait…"

On windows Server 2008 R2 I have recently added the windows server backup (WSB) feature.

Opening WSB I get the message “Reading Data; please wait…”. This message fails to go away, even after leaving the server for over 12 hours. I also notice in the task manager that svchost.exe (username: networkservice) is using all available processing power. So I terminated that process and then WSB comes on-line.

However after restarting the server and WSB the issue reoccurs. WSB also fails to recognize my store-in-go flash drive (2gb).

What is the underlying problem here?

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