Backup with password and test problem

Hi,
I have just started to use Toucan and when I try to do a 7-zip complete backup with password and test after creation, Toucan hangs after it has created the archive and does not do the test.

I found ( after an hours wait!) that by killing the 7zip process in windows task manager it finished the task with the following text in the end of the progress window:

Compressing Budget\Home_Budget20120501.xlsm
Compressing Budget\MASTER_20120403.xlsm

Everything is Ok

7-Zip 9.17 beta Copyright (c) 1999-2010 Igor Pavlov 2010-10-04

Processing archive: E:\TCN_Safes\Budget.7z

Enter password:

Elapsed: 01:01:26

It appears from that message that Toucan/7zip is waiting for a password to be entered? When I run the same backup without the test after create the backup is created ok and the job finishes OK.

I have the full text of the hung job if needed or I can create the hang if needed.

Windows 7 pro SP1 Intel dual core.

UPDATE:

Tried 3.1 pre release 11

Same error happens and this new one:

When trying to backup folder 'My Diary' (no quote) this happens

Creating file list, this may take some time.
11:15:42 WARNINGS for files:
11:15:42 WARNING: Cannot find 2 files

7-Zip 9.20 Copyright (c) 1999-2010 Igor Pavlov 2010-11-18

Scanning

E:\Documents\My: WARNING: The system cannot find the file specified.

Diary: WARNING: The system cannot find the file specified.

Updating archive E:\TCN_Safes\DTest.7z

E:\Documents\My : The system cannot find the file specified.

Diary : The system cannot find the file specified.

7-Zip 9.20 Copyright (c) 1999-2010 Igor Pavlov 2010-11-18

Processing archive: E:\TCN_Safes\DTest.7z

Enter password (will not be echoed):

This is where I Killed the 7-Zip in task manager (again). There doesn't seem anywhere to enter the password for the testing phase!!!!!!!

Changed folder to 'My_Diary' and no file errors plus backup worked except for Password hang (Again Again!!).

ANY THOUGHTS ANYONE???????????

Best regards,

Nigel

Senectus et perfidia iuventutem que sollertiam vincet