The SQLServer native command " BACKUP DATABASE [TestDB] TO DISK = N'D:\backup\TestDB.BAK WITH INIT" LiteSpeed engine 1.1 never compressed the backup file.
The path in the registry may not be accessible due to limited permissions.
1. Edit registry | select HKEY_LOCAL_MACHINE\SOFTWARE\Quest Software\
2. Select IniPath
3. Ensure the path is available C:\Documents and Settings\All Users\Application Data\Quest Software\LiteSpeed\Engine.
1. The user that runs the backup job must have permission to the registry key pointing to the location of the ini file
2. The user that runs the backup job must have permission to folder where the ini file is located.
3. The ini must be saved after any changes
4. The driver configuration must be updated after any changes