There are plenty of posts here about the backup issue, Search on backup and backup2ws and you will find the answers. Go back to the start of 2003 at least.
There are TWO SEPERATE issues, one is the backup file size issue, the other is the ability of the browser (& processor & memory) to restore the large backup file.
To my understanding the backup file size issue has nothing to do ext2 or ext3 or FAT32 or NTFS file systems, it IS a Linux limitation of smb and tar when used together. The "packages" used by sme server are what needs fixing, not the sme server as such. It has nothing to do with Windows (32 bit versions).
Some people can create large sme server backup files bigger than 2Gb somehow, but they often stop at 3.99Gb, I never have been able to so, and this is on NTFS file systems on which I & they can create 20Gb sized files without difficulty (not backups from sme though).
The restore issue does involve the particular brand and version of browser you are using. I have tried different browsers, some work some don't, IE is troublesome esp v5.5. A large (< 2Gb) backup file will not restore at all using some browser (IE 5.5) but will restore OK using different browser (Netscape 6). The URL that you use to access server manager also has some effect depending which sme version you use, particularly when Verifying your Backup file,
http://servername/server-manager appears more stable.
You don't have to believe me, just let the other posts tell the same answers, I have read them all and that's what they say, as well as what I have experienced.
If you can restore that 7Gb file, then that's good, tell us how you did it.
Regs
Ray