Paul,
You limit is due you install path for BI 4.1, it is VERY STRONGLY recommended to be installed in shorter path (i.e. C:\SAP BusinessObjects\SAP BusinessObjects Enterprise XI 4.0 ). The reason BOE XI 3.1 works it's path is little shorter.
One option is to move your FRS to a shorter path so that you schedule instance can work properly.
Steps involved:
- Copy you FRS folder from current path to shorter path
- Update path on server Input and OutPut servers
- Restart the Input & OutPut servers
Regards,
Ajay