backup not backing up to selected path

Server1:  our central site
Server2:  our SQL server where the central site DB lives.  


Under our site maintenance tasks we enabled backup configmgr site server.   we gave it the following settings.

Set Paths =  Network path (UNC name) for site data and database
path = \\Server2\d$\Source\Backup


I then started the backup service.  Everything was backed up but not all in the same location.  The DB was backed up to the Server2 (SQL box) and the rest of the files were backed up to Server1 (central site)

Why?  


Now, the only thing I can think of is we used to have "different paths for site backup and database backup"  and each went to: d:\source\backup.   It seems to have stuck and we can't change it.  Again, why?

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mqh7