Our SQL Admin is busy until next week, so I am wondering anyone else having this issue. We are unsure the reason why. BESMgmt was on MSDE and we converted to SQL, so unsure if this is the issue causing the Transaction Log to fail to backup. We do get a Full Backup each Day

Make sure they aren't full. That's the only reason I've seen them produce this error. They fill up quickly (especially on a Beta release), so change the file size to overwrite (or maybe unlimited.) I think the default is set at 50mb. If it hits this 50mb limit, it stops writing. Overwrite will allow it to append to the end while deleting lines off the top of the file.

Set to - Unrestricted size
and tried Backup transaction log again and received this Message -
Backup can not be performed on this database. This sub task is ignored

Not sure then, we haven't seen any problems like that since an earlier beta version when it was running out of space.