Time Machine Backup stuck on Finishing Backup

Hello
I am backing up my macbook (on snowleopard) for the first time using Time Machine and the WD My Book for Mac external hard drive. The dialogue box shows that Time Machine has finished backing up 370KB of 370KB, but it is stuck on "Finishing backup". I've left it running overnight, but it is still stuck on this message. If I open Time Machine (to the star wars-looking section), it appears that the back up was successful (but of course I've only checked random files - not every single file). I can still use some applications on the macbook, but some things, like Safari, Mail and Preview are frozen.
I've searched this forum and looked at http://web.me.com/pondini/Time_Machine/Troubleshooting.html but have not been able to find a solution to this issue.
Please can anyone assist?
Many thanks in advance!

Thanks so much for your prompt response!
I ran Repair Disk on the TM volume - there were no problems.
I then ran Verify Disk on the source volume and got the following message: "Error: This disk needs to be repaired. Start up your computer with another disk (such as your Mac OS X installation disc), and then use Disk Utility to repair this disk." I've proceeded to insert the installation disc, but was not sure where to go from here. I've tried to follow the instructions on this thread: http://discussions.apple.com/thread.jspa?messageID=13107919&#13107919 however, the options that come up are not as per the instructions on the thread. Specifically, after inserting the disc and pressing 'Continue', the only option it gives me is to re-install the OS in its entirety. It does not give me the option, as anticipated in that thread, to select a language nor does any menu bar appear allowing me to select Disk Utility etc etc.
Do I need to shut down the macbook and insert the installation disc only after it has rebooted? (Apologies in advance if this is an obvious question. I am hesitant to reboot unless this is what I am supposed to do as it often leads to all sorts of other issues).
Many thanks!

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