Failed to acquire connection "Local server connection".

For some reason my back up of DB and Log files stopped working and I am now getting this error:

Executed as user: TTEST\SYSTEM. ...rsion 9.00.4035.00 for 32-bit  Copyright (C) Microsoft Corp 1984-2005. All rights reserved.    Started:  2:00:00 AM  Error: 2011-01-01 02:00:20.87     Code: 0xC00291EC     Source: {62D2C309-145B-4023-B7D7-33D8EA634DD7} Execute SQL Task     Description: Failed to acquire connection "Local server connection". Connection may not be configured correctly or you may not have the right permissions on this connection.  End Error  Warning: 2011-01-01 02:00:20.87     Code: 0x80019002     Source: OnPreExecute      Description: SSIS Warning Code DTS_W_MAXIMUMERRORCOUNTREACHED.  The Execution method succeeded, but the number of errors raised (1) reached the maximum allowed (1); resulting in failure. This occurs when the number of errors reaches the number specified in MaximumErrorCount. Change the MaximumErrorCount or fix the errors.  End Warning  Error: 2011-01-01 02:00:35.97     Code: 0xC0024104     Source: Back Up Database Task      ...  The package execution fa...  The step failed.

What I am wondering is if I should try and fix this or just recreate the job fresh?  I have checked the SQL Server Agent properties and they are set to log on with Local System Account as always.  Should I change the login with an account that has admin privileges?

Any advise would be great.

Thanks,

Rich