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Event ID: 3041 Source: MSSQLServer

BACKUP failed to complete the command BACKUP DATABASE *databasename*. Check the backup application log for detailed message.
In my case, I found the issue to be related to the SQL Management Studio, Ran the back up from another management studio without any issues.
This happens, when you activate compression on Standard Edition 64bit - this feature is not supported.
This error also occurs if a transaction log backup is attempted on a database that was recently switched from the Simple to Full recovery model, and no full backup has been performed before the transaction log backup. SQL server will raise an error because the log backup would not be usable. Creating a full database backup should resolve this.
In my case, this event was recorded is when a database included in a backup plan was taken offline.

ME827452 suggests that this may be recorded in error (the backup is successful) on a Windows 2003 Server running MS SQL 2000. A hotfix is available.

ME905616 describes an instance of this error when the block size used by a backup type is not supported by the SQL 2000 (which supports block sizes up to 64 KB). See the article for resolution.
I got this error when there was not enough space on the disk. I freed up more space and the backup worked.

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