I'm trying to understand what steps you took above. You said " During the installation Timeslips defaults to the network drive and It installs on the network drive ok." If this was only a workstation problem, why would you install it on the server again? And how did you install it on the server, ie what steps? Also, how did you install it on the workstation? Finally, if it's only the backup service , you can disable that and see if Timeslips will run on its own.
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