Got to Control Panel -> Administrative Tools -> Services. Verify that the Removable Storage service can be started without hanging.
NTBACKUP also starts the Volume Shadow Copy service. Verify that the Volume Shadow Copy service can be started and does not hang.
Look in the Event Log for errors related to the Removable Storage service and the Volume Shadow Copy service.
It could be a stuck volume. NTBACKUP peeks at every volume on the computer so it can create the file tree. Try running EXPLORER.EXE and verify that you can open and view every volume listed under Computer (C:, D:, E:, etc) without hanging.