Windows 7 Backup error - 0x80070002 Backup encountered a problem while backing up file...

Here's an interesting error. 0x80070002 Backup encountered a problem while backing up file...

I recently upgraded to Windows 7 Ultimate. I have 2 machines, one was an upgrade from Vista and the other was a clean install. When I tried to do a backup (thank you so very much hubby for the sunday reminder,) I did the Windows recommended backup of all personal files and also a system image. Total size is estimated at 70GB. Cool, so I selected my usb external drive and let it rip. A bit later, when it was done, I received:
error 0x80070002 Can not complete backup:
Backup encountered a problem while backing up file "C:\Users\Mcx1\My Finances."
Backup encountered a problem while backing up file "C:\Users\Mcx1\Searches."
Backup encountered a problem while backing up file "C:\Users\Mcx1\Contacts."

Tried it again... same error. :?

Now this was really strange because
#1-I didnt use the Mcx1 profile and
#2-There wasn't even files there for it to have an error on.

Then it hit me. Mcx1 is the profile that get created when you use Windows Media Center Extender, like to my Xbox 360. So I opened "C:\Users\Mcx1" and created 3 new folders and renamed them "My Finances" "Searches and "Contacts"
Put nothing in them, just left them empty.
I re-ran the backup and it worked perfectly with no errors.

Its turns out that the recommended Windows settings has a required file list, and if a file is missing from that list, it will not complete the backup.

I just wanted to share.