Question : I need more info on Server 2008R2 Native Backup limits and capabilities

This question is specific to R2 version of Server 2008.  Since backup software suites have gotten so expensive and complicated, I'm trying to use MS Server 2008R2 native backup service.  I've checked online but haven't found straightforward answers to a couple questions.  

I work in a small business environment.  I have a SBS2003 server hosting exchange and am going to replace an aging Server 2003 box with a new Server 2008R2 64 bit machine.  The new server will function as a file server and host three seperate instance of SQL databases.  

I want to backup to a rotation of three different external hard drives.  Typically I do full backups each night.  Once a week I swap the external hard drive.  The two backup drives not being used that week are purposely stored off site.   With Server2008 I'm aware you allocate a pool of hard drives for backup.  I was not under the impression I could rotate hard drives in and out of the pool in order to have and offsite copy.  Is that still the case with R2 version?

SQL databases are becoming a larger part of our operation.  We are now scanning almost all documents into a document management database, our financial system uses an SQL database, and we're adding a water plant management database.  Currently SQL backups are beiing done manually within each application.  I've been reading about Volume Shadow Copy Sevices being utilized in order to backup SQL.  My question is plain and simple, does MS Native backup fully backup SQL databases or do I need third party backup software (like Backupexec) with and SQL agent?

Last question involves SBS2003 server.  Small Business Server must be the "root server" of the tree.  Our SBS server is primarly used for exchange services.  This server is aging but still works like a champ.  I am considering "keeping it alive indefinately" by virtualizing" this machine and running it on a Server 2008R2 box.  If I take this route, does MS Native backup properly and fully backup the exchange server?

Because this question is all about backup, I'm submitting it as a single question.  But becuase it covers a variety of topics I am assigning a 500 point value.  

Thanks in advance for your help.

Answer : I need more info on Server 2008R2 Native Backup limits and capabilities

2008R2 native backups are very bad. better to use 3d party for backup of 2008 servers

>>SQL databases are becoming a larger part of our operation.  We are now scanning almost all documents into a document management database, our financial system uses an SQL database, and we're adding a water plant management database.  Currently SQL backups are beiing done manually within each application.  I've been reading about Volume Shadow Copy Sevices being utilized in order to backup SQL.  My question is plain and simple, does MS Native backup fully backup SQL databases or do I need third party backup software (like Backupexec) with and SQL agent?
>>
you dont need 3rd party for this.
MSSQL has good comfigurable maintenance plan inside SQL management console. You can configure backups as you need. SQL DB shouldnt be stopped during backup (because VSS technology).

>>Last question involves SBS2003 server.  Small Business Server must be the "root server" of the tree.  Our SBS server is primarly used for exchange services.  This server is aging but still works like a champ.  I am considering "keeping it alive indefinately" by virtualizing" this machine and running it on a Server 2008R2 box.  If I take this route, does MS Native backup properly and fully backup the exchange server?

SBS2003 can be run in virtual enviroment Hyper-V R2
It can continue use native backups from guest OS SBS2003 as before, you dont need to change it.
(or you can even backup VHD files, but for this you need to stop guest OS).

From your topic, i do not found,  where you are planning to install 3 SQL instances. on Hyper-V it cant be used by license agreement. BTW  I wound not recommend this because you can have perfomance problem (SQL and Exchange DB on the same HDDs)