While it's better in 7 the past history of Microsoft backup software is one that has me write "use anything else."
I have a networked shared USB connected HD on PC 1 that works fine on PC 1. However when I tried to setup MS Backup for the first time on PC 2, it does not list the external HD called Drive "L". When I open COMPUTER on PC 2, the external drive is shown. Drive "L" is also set for ALL USERS, and shared label is indicated on PC 1. So the million dollar question is, why doesn't it show on the list of available drives to select for backup on PC 2? Also, there isn't any way in the backup setup screen to browse or search for any drives. Stumped!