DB Name with trailing space causes 6.4 to hang
Finally, I tried doing a Red Gate SQL Backup Backup, with NO encryption. It backed up fine. The auto name convention I am using exposed that there was an extrax space, or blank, in the backup file name. D'OH! That let me remember the bug from 5.x. I verified that there was indeed a hidden, trailing space in the db name, and renamed it without that space. Issue resolved!
Please see what you can do to avoid the issue for others.