Back up set up with Windows 7 "The system cannot find the file specified (0x80070002) [Anwsered]

Back up set up with Windows 7 "The system cannot find the file specified (0x80070002)

Running Windows 7, I am prevented from running Set up Backup and receive the following "The system cannot find the file specified (0x80070002)  
I am blocked from using   -  even initiating 
- Windows 7 backup set up .

Following the advice in MS article ID 979281 I went to MS Article 976972 which best fits my problem – namely - using Windows 7,  I can’t copy data from the computer to an external USB device.
I used the download for x86-based version of Windows 7 (for a 32 bit system) and got the screen “Update for Windows 7 (KB976972)”
Validation (Hooray !!) was successful so I proceeded to download the update (It appeared offered as Windows6.1 KB976972-x86.msu)
There followed a message that “Windows Update Standalone Installer” was “Searching for Updates on this computer” which was promptly followed by a Standalone Installer message “The update is not applicable to your computer”.
There were no further suggestions.
I am at a total loss in using Windows 7 backup which I am assured is good.
If “The system cannot find the file specified (ox80070002)”, is there anybody out there who can?

Keys to the Problem Back up set up with Windows 7 "The system cannot find the file specified (0x80070002)

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Recommended Method to Repair the Problem: Back up set up with Windows 7 "The system cannot find the file specified (0x80070002):

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