Unable to backup system state due to OEM partition

We have a new domain controller with Windows 2008. HDD is SAS Raid 1.

We are unable to configure scheduled backups or run backup of system state.  When backup of the system state is attempted, it says "One of the specified source volumes has invalid format and cannot be protected using Windows server backup. Only volumes formatted with NTFS can be protected."

If we attempt to configure a full backup, we get :  "Volumes OS have an unsupported file system and cannot be backed up."

DISKPART output:

 Partition ###  Type              Size     Offset
 -------------  ----------------  -------  -------
 Partition 1    OEM                 70 MB    31 KB
 Partition 2    Primary           2055 MB    70 MB
 Partition 3    Primary            140 GB  2126 MB
 Partition 0    Extended           136 GB   142 GB
 Partition 4    Logical            136 GB   142 GB

List volumes:
 Volume ###  Ltr  Label        Fs     Type        Size     Status     Info
 ----------  ---  -----------  -----  ----------  -------  ---------  --------
 Volume 0     D                       DVD-ROM         0 B  No Media
 Volume 1         OS           FAT32  Partition   2055 MB  Healthy    System
 Volume 2     C                NTFS   Partition    140 GB  Healthy    Boot
 Volume 3     E   New Volume   NTFS   Partition    136 GB  Healthy
 Volume 4         PolySer 201  NTFS   Partition    465 GB  Healthy

The second partition (OS) is system, active.

I presume it is needed during start up or recovery.

I need to backup the system state and be able to do bare metal recovery. What are my options?
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smtwklaAuthor Commented:
The FAT32 partition contains the following files:

<DIR> Boot

the directory Boot contains
<DIR> en-US
<DIR> ru-RU

It seems there was a partition named OS when Windows was installed and since it was the active partition, the boot loader / manager was installed to it. I converted the partition to NTFS using CONVERT and now, the backup runs fine. Also, the machine is able to reboot properly. Thanks for all who helped.
Jimmy AndrewsFounder, What2do.LiveCommented:
It looks like your Volume 1 (Partition 2), which appears to be a OEM recovery drive, is in FAT32 format, which accortding to the error, is unsupported.  Remove that from the backup set and try again.  I am pretty sure this is what is generating the error.
Jimmy AndrewsFounder, What2do.LiveCommented:
I am sorry about my last post, basically repeating what you said.  But it is active because I am sure some of the build in OEM programs access it from time to time.  Set up a second backup set that can backup just the FAT32 system.
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smtwklaAuthor Commented:
When I try to backup just the system state alone, I am still getting the error. Which means...
Jimmy AndrewsFounder, What2do.LiveCommented:
What is the fail if you just attempt the system state?  Is it the same fail?
smtwklaAuthor Commented:
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