I have not worked with DFS so far, but i think you are following the right 
track.

Something essential NW has to follow is the "File System Walker" to determine 
the exact path names for the backup objects, files. However, the only path he 
can really follow is what he can examine. And this is only the local 
filesystem. Anything else must be explicitly named in the save set list. 
Otherwise it just can not be found (the algorithm would not know where to 
start). 

Another reason would be that there is no NW client software installed on the 
machine (like for NDMP filers where you can't install any other software by 
design).

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