Problems backing up MS SQL

Hi,

I am trying to backup 2 SQL hosts 1 SQL 2005 and another SQL 2008 R2, both are running on Windows 2008 R2.

The jobs hang at a Snapshot processing error, they also max out the SQL server connections.  Most seen so far is 2600 SQL connections, both SQL server have 1 instance with over 700 DB's in that instance.

The jobs do back up data just not all of it, they get about 30% of the way through, then the SQL connections max out and the job hangs.

We are running the SQL backup agent.

Any clues?