Hi Jim,
I have never had the chance to verify this and so if anyone else already done so, please share.
There is a howto on configuring flexbackup to backup to a Windows share (say on a W2K server that has a tape drive). Now, we know flexbackup has no problem when backing up gigs and gigs of data to tape. If the same holds true of the backup file it generates on the Windows share, then this, I believe is a more sensible approach to backup than to do a backup to desktop from server manager (which cannot be automated) while we can schedule a backup to the windows share. I have done this and it works fine but have not had a site who has that much data on the SME server to backup as yet (largest backup set I saw was 1.5GB).
If you are selling the idea to a client who does not have any other server on hand, then you should consider telling them to put in a tape drive (which does not have the 2GB limit). Backup to desktop, to me, is only ever useful for sites that only use the SME server as a mail server and / or gateway only where the backup set is usually not very big.
Just my 2 cents.
Kelvin