I followed the upgrade instruction from 4.8.2 > 4.8.5 to the letter - not uploading config-inc.php until after running the upgrade script and saving the settings.
So to your points.
Quote:
Number 1
The directory server path you have entered in the global option for backups must exist and be writable 777
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Nothing here has changed since 4.8.2
/home/backups/photopost
Quote:
Number 2
Mysql must be on the same server as the install.
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Nothing here has changed since 4.8.2
Quote:
Number 3
The path to mysql must be entered correctly also in the backup options in admin
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Nothing here has changed since 4.8.2
/usr/bin/mysqldump