Backup scripts stalls

Hello everyone,

I've been finding myself stumped on a script that is stalling after NTBackup completes. I have the script written to backup data files, then a system state. If i run the script manually, and close NTBackup while it's backing up data files, the script completes correctly. If I let the script run its course naturally, NTBackup completes successfully (according to the NTBackup Logs) but the script doesn't continue. In fact the server freezes and requires a restart.
This script does seem to work fine on other servers. So I'm inclined to think my problem lies somewhere with the size of the backup.

The data being backup is 250GB located on a 6TB partition (D. I have tried setting the script to backup to both the local C: and D: drive, which didn't make a difference. The System State is around 3GB. There is 500GB of free space on C: and 2TB free on D:

This is a small file server running AD and DHCP. It only has 1GB of ram, but doesn't seem to need more than 768...

The full script can be found here:
http://pastebin.com/m4e73a611
(the problem is line 3

I'd love some suggestions...
Rob

Here is an excerpt from the script that's causing my difficulties:
C:
REM ----------------------------------------------------------------
REM Backup the %backupfile1% directory
start /low /wait "Backup" ntbackup backup "@%backupdest%\%backupfile1%.bks" /J "%backupfile1%" /f "%backupdest1%\%backupfile1%.bkf" /v:yes /M normal

REM Set the logfile so it can be viewed in notepad
setlocal ENABLEDELAYEDEXPANSION
set file=N
set folder=C:\Documents and Settings\Backup\Local Settings\Application Data\Microsoft\Windows NT\NTBackup\data
for /f "Tokens=*" %%a in ('dir "%folder%\backup*.log" /b /O-D') do if "!file!" EQU "N" set file=%%a

REM Copy the logfile to the %backupdest% directory
copy "%folder%\!file!" %backupdest%\%backupfile1%.txt /y
endlocal

REM Copy the backup file to a second disk REM - Temporarily Disabled
REM COPY "%backupdest%\%backupfile1%.bkf" "C:\%backupfile1%.bkf"

REM ----------------------------------------------------------------
REM Backup of this Server's system state
start /low /wait "Backup" ntbackup backup "@%backupde /J "%backupfi le1%" /f "%backupdest1%\%backupfile1%.bkf" /v:yes /M normal
start /low /wait "Backup" ntbackup backup systemstate /J "%computername%State" /f "%backupdest%\%computername%State.bkf" /v:yes /M normal

REM Set the logfile so it can be viewed in notepad
setlocal ENABLEDELAYEDEXPANSION
set file=N
set folder=C:\Documents and Settings\Backup\Local Settings\Application Data\Microsoft\Windows NT\NTBackup\data
for /f "Tokens=*" %%a in ('dir "%folder%\backup*.log" /b /O-D') do if "!file!" EQU "N" set file=%%a

REM Copy the logfile to the %backupdest% directory
copy "%folder%\!file!" %backupdest%\%computername%State.txt /y
endlocal

REM Copy the backup file to a second disk REM - Temporarily Disabled
REM COPY "%backupdest%\%computername%State.bkf" "C:\%computername%State.bkf"