Using Backup Exec 12.5 to backup the Backup Exec server - DB credentials?

I'm attempting to backup the BE 12.5 media server but am getting errors regarding a lack of AOFO and SQL credentials. I don't know anything about SQL so what's on here is whatever installed with BE. According to "Install Options and License Keys on this Media server...", AOFO is properly installed. I'm not sure what I'm doing wrong. Below I've included EV errors and BE errors.

Event Viewer:
Event Type:      Error
Event Source:      Backup Exec
Event Category:      None
Event ID:      34113
Date:            12/12/2011
Time:            11:18:35 PM
User:            N/A
Computer:      PEGASUS
Description:
Backup Exec Alert: Job Failed
(Server: "PEGASUS") (Job: "Pegasus (daily)") Pegasus (daily) -- The job failed with the following error: One or more SQL Database consistency checks have failed.

Event Type:      Error
Event Source:      MSSQL$BKUPEXEC
Event Category:      (6)
Event ID:      3041
Date:            12/12/2011
Time:            11:15:47 PM
User:            SDIL\backman
Computer:      PEGASUS
Description:
BACKUP failed to complete the command BACKUP DATABASE msdb. Check the backup application log for detailed messages.

Event Type:      Error
Event Source:      Backup Exec
Event Category:      None
Event ID:      57859
Date:            12/12/2011
Time:            11:15:47 PM
User:            N/A
Computer:      PEGASUS
Description:
An error occurred while executing the following query: "BACKUP DATABASE [msdb] TO virtual_device = 'msdb_00__a00c8c6a_67be_4330_896d_50046fe44e9e_' WITH name = 'Backup Exec SQL Server Agent'".
 On server: "PEGASUS".
 SQL error number: "0106".
 SQL error message: "BACKUP DATABASE permission denied in database 'msdb'.
".

Event Type:      Error
Event Source:      SQLVDI
Event Category:      None
Event ID:      1
Date:            12/12/2011
Time:            11:15:49 PM
User:            N/A
Computer:      PEGASUS
Description:
SQLVDI: Loc=CVDS::Close. Desc=Abnormal termination state. ErrorCode=(0). Process=2384. Thread=1244. Client. Instance=BKUPEXEC. VD=Global\msdb_00__a00c8c6a_67be_4330_896d_50046fe44e9e__SQLVDIMemoryName_0.

Backup Exec errors:
V-79-57344-34084 - AOFO: Initialization failure on: "C:". Advanced Open File Option used: Microsoft Volume Shadow Copy Service (VSS).
Snapshot provider error (0xE0008524): Unable to initialize the snapshot because the Advanced Open File Option (AOFO) is not installed on the target computer. You must install this option, restart the computer, and then run the job again.