Need advice on backups, tape drive?

I have a customer that has a Win2000 box configured as a file server on a small network.  It has a Seagate STT20000A tape drive that uses Traven TR-5 Tapes.  This backup method is sufficient for now but....

He wants to upgrade the server to a faster computer, a dedicated server (though still a desktop operating system.)  He'd also like to replace the tape drive.  I need some help since tape drives are foreign objects to me.

Should he consider online backup instead?  Do the pros far outweigh the cons?

Tape drives seem to be expensive and the scheduled backups are difficult to configure. True or False.

Should I try to find a drive that is compatible with his aging drive/tapes?  I priced an Iomega at Newegg but the tapes for it are far more expensive than the ones he currently uses.  

Space and size are not an issue.  We'll probably be backing up less than 1 Gig for the next 5 years.
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Couple of thoughts:

The amount of data is VERY small, I might say if it isn't broken don't fix it.  That said, here's an alternative:

Iomega REV drive.  Yes, the 35 GB capacity is huge and over kill for what you do.  But:

A - The drive is removable, so it can be taken off site
B - The speed is phenominal, it is like accessing a hard drive (way better than tape)
C - Shelf Life of 30 years
D - Price is not bad, a little more than 300 bucks for an internal, less than 4 for a USB
E - The Backup Software is great and reliable thereby easing your scheduling angst.

You can spend 300+ just on decent backup software.  Get the USB and you can take the entire thing off-site, you should at least take a cartridge off-site anyway.  They can also back up even more with it.  With the software you can create daily backups and have each day back up to a sep[erate directory, keeping a rolling 7 days...

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HKComputerAuthor Commented:
Thanks for the valuable advice.  I just ordered one of these, as a kit, from Dell.  While Dell doesn't have the cheapest price, it is reasonable and we were ordering two other computers at the same time.

Here's what sold me on it:

USB 2.0 (Easy installation, move from computer to computer if needed.)
High Speed (Faster than many tape drives. Especially the old ones.)
Reasonably Priced (Less than 500 for a kit: the drive and 6 disks.)
Comes with Software (A real savings)
Supports encryption and passworded backups
Easy to use and to configure
Supports drag and drop
Restoring backups is a snap

Thanks for your valuable suggestion.

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