I checked lab cases, and found only one that reported this error for SQL integrations, It was for DP 6.2, and the problem was fixed with a patch that should have carried forward to DP 7
Expanding my search, and leaving out the SQL integration part, I found nothing for DP 7, and one case for DP 8 configuring an Exchange backup that produces the same error. This is still an open issue
Frankly, I expected the 'checkconf' to fail, returning something other than RETVAL*0. This means that, as far as DP is concerned, the Integration WAS configured correctly, so this may be a bogus error, and something else is causing it
Assuming that SQL is running on Windows 2008, empty the file on the SQL server
Program Data -> Omniback -> log -> debug.log
and try creating the backup again. After the error, check the debug.log file for any entries, and send them along. If it looks like the same condition as reported in the unresolved lab case, I will ask you toopen a case with the response center