Try doing the following
1. Click Start and select Programs-->Accessories-->System Tools-->Backup to start NTBackup
2. Switch to the Backup tab
3. Ensure that the type of disc you want to use for backup is the rewritable media
4. Select the files that you want to back up to CD-RW
5. Specify file for the type of Backup destination (if it's grayed out and shows File, leave it intact)
6. Click Start and select Run
7. Enter %USERPROFILE% in the textbox and press OK
8. In Windows explorer click within the Address bar field and add this string
\Local Settings\Application Data\Microsoft\CD Burning\Backup.bkf
to the end of the string in the bar
The string now should look like
C:\Documents and Settings\YourAccountName\Local Settings\Application Data\Microsoft\CD Burning\Backup.bkf
9. Copy the string from the bar, switch to the Backup Utility window and paste copied string into the Backup media or file name field
10. In Windows Explorer right-click CD burner drive icon and select Write these files to CD command.
See this page for additional info.
Alternatively you can try to save the backup file in another place (not in CD cache folder) and then drag and drop it right on the CD-RW icon in the drive tree.

Thanks for that info. I couldnt get past step 5 of your instructions but the alternative solution worked excellent. I checked MS web site and in reference to the problem they state that you cannot B/U directly to the CD Rom drive because backup does not consider it "removeable media." Ya think they would do somehting about that.

Thanks,
Tom D