PROBLEM
Backups failing with the following error:
Failed Backup - The operation encountered an error. (ALTERR_BASEBACKUPCONTROLLER_018)
There was a problem while transferring data to or from the backup location. (ALTERR_DTPROVIDER_003)
(ALTERR_DATAPIPE_005)
(ALTERR_FILTER_001)
Cannot write to file - I/O error. (ALTERR_BASE_FILEOP_043)
[Windows Error 665]: The requested operation could not be completed due to a file system limitation
CAUSE
Directories with NTFS Compression will not accept files over a certain size and will throw back the above error when attempting to write files over this size..
According to this article on MSDN it is ~30GB
SOLUTION
Disable NTFS Compression on the backup destination drive. If the issue persists, defragment the drive.