OK dropped the trusted connection, created a user account with rights to execute the stored proceedure and backup operator, also removed the 'EXEC' fromt he sql. This has somewhat changed the error to a 'timeout'. While watching the file structure on the SQL Server, I can see the initial file name created, then this goes once the process times out.

If I run it from the Query Analyser using the credintials I created it works fine ... any other ideas before I go back to the black board to find another way

Error=COM exception error "Execute" (Microsoft OLE DB Provider for ODBC Drivers - [Microsoft][ODBC SQL Server Driver]Timeout expired) [-2147352567/80020009]

Cheers
Shaun