Thanks to versa, Ray, and chris, I got the dar backup to USB disk working at last. Now I feel OK about attempting the update from smesever7.1 to 7.3. I am going to go the CD route this time.
I am Doug, BTW. Thanks for your help folks. This has been my first serious encounter SME-Server troubleshooting and I have learned a lot. On the tape drive front, which was the original impetus of all this, Dell is going to be replacing the drive.