Same problem here on Ubuntu 12.04. normal backups to the file system
work fine. Ubuntu One backups to the "default" folder (~/deja-
dup/[computername]) seem to work as well.

I did set a directory inside the "Ubuntu One" folder (~/Ubuntu
One/backups/deja-dup/[computername]) which then resulted in the "Code
401" error. Don't want my home folder to be cluttered with even more
directories. Maybe it doesn't check for the entered folder already being
inside an Ubuntu One folder? Would be nice if this error could give a
bit more information.

As a solution for me I did select the "Local Folder" option and set the
location to a folder inside the Ubuntu One directory. Problem with this
is that it doesn't check for the Ubuntu One size limits and basically
fills the directory till my harddrive is full. Otherwise it would delete
old backups to free up space as soon as the Ubuntu One limits are
reached.

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https://bugs.launchpad.net/bugs/920036

Title:
  Got status code 401 while trying to backup

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