I tried that and I'm getting this error:

C:\Documents and Settings\administrator.FLORIDAFOOD.000>osql -U sa -S ffs2000a\bkupexec

Password:

Login failed for user 'sa'. Reason: Not associated with a trusted SQL Server connection.

This option has already been set and has always been set to true when SQL Server Agent has stopped working and not restarted before. Are there any other possibilities...