Server Backup Error MS 2003 SBS

Hello and thank you for taking the time to address my question.

Running Server 2003 sbs sp2. Soon to be upgraded to sbs 2008 (reason old hardware, one of the HD's is reporting bad blocks)

I received a backup error report today in regards to the backup. I would like to get some input on this since i need to have a clean file backup for migrating over to new server. Below the screenshot is the log. Any input/recommendation on how i should proceed would be greatly appreciated :-)  Thank you for your time and expertise.
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BACKUP LOG
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9/1/2010 8:00 PM
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Date: 9/1/2010
Time: 8:00 PM
User: SYSTEM
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Backup Runner started.
Launching NTBackup: ntbackup.exe backup "@C:\Program Files\Microsoft Windows Small Business Server\Backup\Small Business Backup Script.bks" /d "SBS Backup created on 9/1/2010 at 8:00 PM" /v:yes /r:no /rs:no /hc:off /m normal /j "Small Business Server Backup Job" /l:s /f "W:\Backup Files\Small Business Server Backup (03).bkf" /UM
NTBACKUP LOG FILE: C:\Documents and Settings\SBS Backup User\Local Settings\Application Data\Microsoft\Windows NT\NTBackup\data\backup10.log
=====================<BEGIN NTBACKUP LOG FILE>=====================
Backup Status
Operation: Backup
Active backup destination: File
Media name: "Small Business Server Backup (03).bkf created 9/1/2010 at 8:00 PM"

Volume shadow copy creation: Attempt 1.
Backup (via shadow copy) of "C: BOOT"
Backup set #1 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Media name: "Small Business Server Backup (03).bkf created 9/1/2010 at 8:00 PM"

Backup Type: Normal

Backup started on 9/1/2010 at 8:20 PM.
Backup completed on 9/1/2010 at 11:08 PM.
Directories: 7479
Files: 71506
Bytes: 32,198,453,718
Time:  2 hours,  47 minutes, and  53 seconds
Backup (via shadow copy) of "D: DATA"
Backup set #2 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Media name: "Small Business Server Backup (03).bkf created 9/1/2010 at 8:00 PM"

Backup Type: Normal

Backup started on 9/1/2010 at 11:08 PM.
Backup completed on 9/2/2010 at 2:21 PM.
Directories: 23767
Files: 403175
Bytes: 113,652,326,684
Time:  15 hours,  12 minutes, and  42 seconds
Backup of "RICHMARSBS\Microsoft Information Store\First Storage Group"
Backup set #3 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Media name: "Small Business Server Backup (03).bkf created 9/1/2010 at 8:00 PM"

Backup Type: Normal

Backup started on 9/2/2010 at 2:21 PM.
Backup completed on 9/2/2010 at 3:18 PM.
Directories: 4
Files: 12
Bytes: 12,518,467,036
Time:  57 minutes and  27 seconds
Backup (via shadow copy) of "System State"
Backup set #4 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Media name: "Small Business Server Backup (03).bkf created 9/1/2010 at 8:00 PM"

Backup Type: Copy

Backup started on 9/2/2010 at 3:18 PM.
Backup completed on 9/2/2010 at 3:24 PM.
Directories: 282
Files: 3171
Bytes: 647,766,017
Time:  5 minutes and  50 seconds

----------------------

Verify Status
Operation: Verify After Backup
Active backup destination: File
Active backup destination: W:\Backup Files\Small Business Server Backup (03).bkf

Verify of "C:"
Backup set #1 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Verify started on 9/2/2010 at 3:24 PM.
Verify completed on 9/2/2010 at 3:52 PM.
Directories: 7479
Files: 71506
Different: 0
Bytes: 32,198,453,718
Time:  27 minutes and  24 seconds

Verify of "D:"
Backup set #2 on media #1
Backup description: "SBS Backup created on 9/1/2010 at 8:00 PM"
Verify started on 9/2/2010 at 3:52 PM.

Error: An inconsistency was encountered in the requested backup file.
Verify completed on 9/2/2010 at 4:42 PM.
Directories: 9389
Files: 197877
Different: 0
Bytes: 50,882,296,910
Time:  50 minutes and  21 seconds

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=======================<END NTBACKUP LOG FILE>=====================
NTBackup finished the backup with errors.

For more information about failed backups, see the article on troubleshooting your backup at the following Web page: http://go.microsoft.com/fwlink/?LinkId=18414

Backup ended at Thursday, September 02, 2010 4:42 PM
Backup Runner finished.
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