Important Umbraco backup information
As a result of user feedback, it seems that a few people are having an issue with failed backups as a result of using a backup target directory under your web root. This is because Umbraco backup tries to backup it's own target zip file, causing some process conflicts.
This issue will be fixed with the release of 1.1, however, unless you have to,Do not backup under the webroot.
Google and other search engines can index zip files and their contents. One user has already made me aware of some Umbraco blogs that have zipped versions of their site that have been indexed and you are able to see the contents of web.config including database host and password details.
If you are in the unfortunate position of having an ISP who will not let you write anywhere other than your webroot, 1.1 is coming soon, but please note that you should download your backups from your server and remove them from the web root upon completion.