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When the Vembu Client for File & Application Backup runs as a service, there is a limitation in dumping the Outlook data because the Outlook application doesn't release the PST file handle or it releases the handle after 20 to 30 minutes for every I/O operation that happens in Outlook PST file; Due to this, Vembu Backup for File & Application fails to open and read the PST file during the dump process. It is a limitation for the Outlook plugin backup alone.

So we recommend running the Vembu Client for File & Application Backup as an application during the backup for Outlook.

Regarding the questions:

1) I think this means the service that is running must be configured using the ID & pw as the owner of the pst file. True?

No, we need to run the Vembu Client for File & Application Backup under the user (owner of the PST) as an application, and then we can back up the concerned users' Outlook data without any issue.

2) This user has no pw on his account/computer outlook.png. MS won't allow running a service without an ID and "password".

As mentioned earlier, instead of running the Vembu Client for File & Application Backup as a service, run it as an application so no password is required. All you need to do is log in to the client machine (in which the Outlook and Vembu Client for File & Application is available) and run the Vembu client as an application.