When backing up a VM using the Automatic method, a VA deployed, and vRanger on a physical machine you recieve a "3201 - Cant read" and "Hot-add failed" error.
Automatic mode selected the VA as your LAN-Free option, so it will try Hot-add instead of SAN based backups. If you do not have the proper licensing (Advanced, Enterprise, Enterprise Plus - ESX(i) 4.0 and up or Entperprise and Enterprise Plus - ESXi 5) then hot-add will fail to attach the disks to the VA and cause the 3201 and hot-add failed errors
Edit the job and manually select SAN transport and LAN if you wish to have a backup in cease SAN based fails. Then run your job to test.