SQL 2005 Log shipping error - can not find network path

Hello

wondering if anyone out there is SQL land can help with this issue.  i am setting up log shipping between two databases and i receive the error below.  Googlling every possible solution, i first went from two servers that were mismatched on authentication (now corrected) to this.  documentation on the internet states that the network service should have read and write permission on the secondary sql machine.  i have made these changes and still  a no go.so i am at wits end.  

the help link from Microsoft does not help at all :(

please help

OS - Windows Server 2003
SQL version - 2005 standard

- Backing up primary database [STLNTDB] (Error)
Messages
SQL Server Management Studio could not backup database 'STLNTDB' (Microsoft SQL Server Management Studio)
 
------------------------------
ADDITIONAL INFORMATION:
 
Backup failed for Server 'SCMCTP'.  (Microsoft.SqlServer.Smo)
 
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=9.00.4035.00&EvtSrc=Microsoft.SqlServer.Management.Smo.ExceptionTemplates.FailedOperationExceptionText&EvtID=Backup+Server&LinkId=20476
 
------------------------------
 
System.Data.SqlClient.SqlError: Cannot open backup device 'T:\BACKUP\STLNTDB.bak'. Operating system error 3(The system cannot find the path specified.). (Microsoft.SqlServer.Smo)
 
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=9.00.4035.00&LinkId=20476
 
 
- Restoring backup to secondary database [SCMCTP-BAK].[STLNTDB] (Stopped)
 
- Saving secondary destination configuration [SCMCTP-BAK].[STLNTDB] (Stopped)
 
- Saving primary backup setup (Stopped)
 
- Saving Monitor configuration (Stopped)
 
- Rolled Back (Success)

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johnkesoglouAsked:
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Aneesh RetnakaranConnect With a Mentor Database AdministratorCommented:
did u restart  the services after changing the authentication
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johnkesoglouAuthor Commented:
yes - each time i made the change
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Aneesh RetnakaranDatabase AdministratorCommented:
Did you check the eventviewer / sqlError /sqlServerAgent error log, sometimes those can contain more detailed info.. also try backing up to a different path
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chapmandewConnect With a Mentor Commented:
Are you on a domain?  If so try making the services run under a domain acct that has access to the shares
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johnkesoglouAuthor Commented:
should i jsut create an account for SQL in the domain and allow it to run the service?  will this have any effect on the other SQL services? would it be prudent to allow the new SQL account to run the other services?
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johnkesoglouAuthor Commented:
ok -so i got the permissions working but now i receive an error telling me that there isn't enough disk space.  in the log shipping menu, i am pointing the copied database to the larger volume.  do i need to just copy the database to the destination server (server B) and initialize it there (this way i can point the databaase to the larger volume?)

Server A has 3 partitions,
Partition 1 = 1.6 GB remaining
partition 2 = 130 GB
partition 3 = 100 GB

Server b has 3 partitions,
Partition 1 = 1.3 GB remaining
partition 2 = 130 GB
partition 3 = 100 GB
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