Data decompression error setting up new log shipping

Any ideas on this? Setting up fresh log shipping. It was existing, but SQL Backup (5.3) was complainging the logs were not in the correct format, so I decided to just re-do it. Nothing changed (as far as I know) on the server.

Here is the log when setting up log shipping. I've tried a few times, and unfortunatly every try i had to recreate a database, since all of them are stuck in (Restoring), and can't get them out. This is SQL 2000.

Setting up log shipping - Failed
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Backing up source database - Successful

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This operation completed with warnings.

Backing up Franklin (full database) to:
d:\DB_LOGS\SEED_Franklin_20081017161742.sqb
Database size : 1.315 GB
Compressed data size: 403.963 MB
Compression rate : 70.00%
Processed 134304 pages for database 'Franklin', file 'devtestData' on file 1.
Processed 1 pages for database 'Franklin', file 'devtestLog' on file 1.
BACKUP DATABASE successfully processed 134305 pages in 50.060 seconds (21.978 MB/sec).
Warning 141: COPYTO error: Unable to copy d:\DB_LOGS\SEED_Franklin_20081017161742.sqb to \\wh_reporting\incoming\SEED_Franklin_20081017161742.sqb (The operation completed successfully).
SQL Backup exit code: 141



Restoring database to destination server - Failed

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This operation failed with errors.

Restoring Franklin2 (database) on SQL2000 instance from:
\\wh_reporting\incoming\SEED_Franklin_20081017161742.sqb
Thread 0 error:
Data decompression error: ZLib decompression error: buffer error
SQL error 3013: SQL error 3013: RESTORE DATABASE is terminating abnormally.
SQL error 3241: SQL error 3241: The media family on device 'SQLBACKUP_7BD51BA6-36F6-44D9-9FE4-A28C9C3F1F75' is incorrectly formed. SQL Server cannot process this media family.
SQL Backup exit code: 790
SQL error code: 3241