The LiteSpeed backup completes successfully, the LiteSpeedLocal and LiteSpeedCentral databases are updated. The SQL msdb is updated correctly. The error message references the login for the user running the LiteSpeed Activity Manager service.
From the SQL Server Error log:
Log SQL Server (Current - 5/24/2012 11:22:00 AM)
Login failed for user 'INSTANCE\USERNAME'. Reason: Token-based server access validation failed with an infrastructure error. Check for previous errors. [CLIENT: <named pipe>]
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