WSUS 3.0 SP1 upgrade from 2.0 SP2 fails with Error 0x80040E14

[Sulolab]

I have got WSUS 2.0 SP2 running fine on W2K3 SP1 server with SQL but after connecting to SQL server instance setup starts updating process and stops saying "Setup not completed " after couple of seconds. I have gone through WSUSSetup.log and have come across this "ExecuteQuery: Failed to execute SQL query BACKUP DATABASE SUSDB to DISK=N'E:\WSUS\SUSDB.bak' (Error 0x80040E14)". Any help for fixing Error 0x80040E14 will be appreciated.

[XDRoX]

I have faced same error previously and i will like to share that Error 0x80040E14 comes up when Network Service has only Read permissions to the SUSDB file. In order to fix this you will have to grant NS read/write permissions and restart the setup. You should not face any issue further and upgrade should get completed successfully after making the changes. In case you have any query here after than let me know, i will suggest you possible solution for fixing it.