Hi Rick,
I'm presently doing this with sme6.0.1 using cwrsync. Can't remember the details off hand but I think I run cwrsync as a service on the 2k box and the sme server synchronises a couple of shared directories into an ibay using rsync. Can't see why it wouldn't work on sme7. I can post my win2k rsyncd.conf if you're interested. Over the next couple of weeks I'm going to have to upgrade the sme6 so I'll write a proper howto when I do the upgrade.
Regards Lloyd