Probably a very good idea, as Chris suggests.
FYI, the root directory on the CEE drive ( aka C:\) is protected in some versions of Windows, particularly server installations. That protection applies to the folder, not the drive. So, being able to write a file to a particular folder, buried deep under the root, doesn't say anything about whether or not you're allowed to write to the root folder itself. An ACL ( that's access control list, part of NTFS permissions) may be preventing the user account the SQL backup is running under from writing here.
To see whether or not that's the problem, debugging 101 suggests you try using code to write a small ( or even empty) file to the root folder in C:\. If that works, figure out what account the backup is running under ( NETWORK SERVICE?) and test their privs to the root folder on CEE.
I'm guessing that's the problem, but there are many possible causes. If you're being paid to develop software, you really need to understand the very basics and figure out how to debug the programs you write.
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