Apparently, nowadays patching SharePoint is a two stage process. After running the update you need to run the PSCONFIG command from an Administrative Command Prompt. I’ve attached the article with the fix. http://social.technet.microsoft.com/Forums/pl-PL/smallbusinessserver/thread/94c5f178-f020-4d0f-ba7c-11c415d0d862.
I got neither TRUE nor FALSE when I ran the test command but I ran the PSCONFIG command anyway and it fixed my backup problems.
*Excerpt from the article
1. Open an Administrative command prompt.
2. Change directory to C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\BIN
3. Run PSConfig.exe -cmd upgrade -inplace b2b -force –cmd applicationcontent -install -cmd installfeatures
*End of Excerpt