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You mentioned upgrade, so I presume you upgraded from Norton 360 v1 to v2. You might like to confirm please?
Next, I can tell you that the backup in v2 is quite different to that in v1.
You do not say how you have set your backup settings. I suggest you go to Manage Backup and Backup settings and tell us how yours is configured. In particular what is your backup destination.?
I presume you are trying to backup to CD! but what happens if you backup to hard disk, does that work?