This video tutorial below is to allow perform system state backup on local drive or critical volume. by default, you will be unable to store backup on local drive C:\
However, you can change the default behaviour of Windows Server 2008 R2 by adding a registry entry.
Check the video that I posted on YouTube:
Test the System backup using Command Prompt or Graphical User Interface.
However I prefer using command prompt due to faster backup.
1. right Click Command Prompt and click Run As Administrator.
2. Type the command :-> wbadmin start systemstatebackup -backuptarget:c: