A few things to check:
Are you using the new high availability datastore? The docs don't specify but it's likely this experimental feature is not compatible with the deprecated master/slave datastore.
If your app is using Java, you have to deploy a non-default Python app to use the backup/restore feature (search for "a note for java developers" on the page).
How large is your datastore? It may take awhile to enable the feature on very large datastores.
How long is your app's name? The error you are seeing is DNS related. The Datastore Admin feature seems to make a request to:
ah-builtin-python-bundle-dot-latest-dot-[YOUR APP NAME].appspot.com
at one point. Due to the length of that subdomain name, if your app name is longer than roughly 23 characters, you'll get a DNS error because DNS is limited to 63 characters per domain section:
http://en.wikipedia.org/wiki/Domain_Name_System#Domain_name_syntax
In my limited testing, I was able to get to a longer domain name by adding the ah-builtin-python-bundle... domain name directly to my system's etc/host file: