Exchange restore from SmartDisk "Failed to connect to all known addresses for device xxx" (4042488)

NVBU and NVSD are on the same machine.
For testing purposes, Exchange databases and logs are restored to the local disk on the NVBU server using the Exchange Server APM 'Copy files to target directory' feature.
The restore job fails with the below error:

Failed to connect to all known addresses for device 'NVBUSERVER'
Failed to restore log file 'C:\Exchangerestore\NVBU\\Mailbox Database 0136324319\E000002E855.log'

At the same time the System Event logs show event ID 4227 source TCPIP:
http://technet.microsoft.com/en-us/library/cc735929%28WS.10%29.aspx

The Exchange restore process trace shows:
0 NET ??? 2196 433 0 132935310226 Failed to bind to any allowed local port
0 PLGDAV ??? 2196 5 0 132935310226 Failed to connect to all known addresses for device 'NVBUSERVER'

Upon checking the restored items, the database files are intact but 1 or 2 of the log files we managed to restore are 0 bytes in size.

Restoring a copy of the same backup from VTL or tape completes successfully.