Cannot start shadow copy VSS_E_WRITERERROR_NONRETRYABLE (MS SQL server with ACT! software)

Please use the following steps on Cannot start shadow copy (VSS_E_WRITERERROR_NONRETRYABLE) (MS SQL server with ACT! software).

Symptom:

When performing a Microsoft SQL database backup, the following warning message is displayed in the backup report:

Cannot start shadow copy, reason = The writer operation failed because of an error that might recur if another shadow copy is created.
(VSS_E_WRITERERROR_NONRETRYABLE)

Cause:

The error is caused by Windows SQL VSS writer conflict with ACT! software.

Resolution:

To resolve the issue:

1. Open the SQL Server Configuration Manager from the Windows Start menu.
2. Click the SQL Server Services item in the left pane.
3. In the right pane, right click on the SQL Server (ACT7), and select Properties.
4. Change Log on as a setting from:
   Built-in account: Local System to Built-in account: Local Service