Yes, it is related to the 2 GB limit. I reported it to the bugs list a coupele of weeks ago and got confirmation of that. Have a look at the How-Tos at
www.e-smith.org - there are a pair there (under my name) on backing up to disk/restoring from disk using flexbackup (the backup utility used by default in SME). I recently had occasion to restore to a new server using the restore How-To because of the 2 GB limit. I had a list of the directories and files to enter in the extract file, but I had problem on my W2K box, and have lost it. You don't need to restore everything, so be careful. You may want ot check the code for the desktop restore to see what it affects.
Des Dougan