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Critique my backup strategy please

I'm no Windows Server 2008 Hypervisor expert.  If you don't mind I'm just looking for a quick critique of my backup strategy.

I'm running 1 Windows 2008 64 server with hyper-v.  On that machine, I have 3 virtual machines, each running Windows 2003 Enterprise.
The first virtual machine is DC, DHCP, DNS, etc.
The second virtual machine is exchange 2003, (and IIS for OWA)
The third virtual machinie is a file/print server.

We are a not-for-profit so cost is an issue always.  Here is how I have the backups configured.

I had a 1 tb usb drive on my physical server.  I had 4 shared folders, (one for the host server and one for each virtual machine respectively.)

Every night, (staggered across the night time-wise,) I do a full ntbackup of each virtual machine to its respective shared folder.  I do a full exchange backup in addition.

Weekly I'm doing a manual full backup of my Windows 2008 server to its shared folder on the usb drive.  It must be a bug or something but you can't schedule those to run to a shared folder otherwise.  In this backup are, obviously, the .vhd files for my 3 virtual machines and my thought process is I could restore an entire virtual machine just from that, (which are at most 1 week old,) and use my ntbackups to bring it current to the previous night.

After I do my manual backup of the Windows 2008 server I copy all the backups from the usb drive to another usb drive and take that drive off-site.  I alternate several separate off-site drives.  

One thing first, I already use Tech-soup and I don't really want to have to use Backup Exec if the old ntbackup/windows server backup its called in 2008 does the job.  I like to keep it simple until its necessary to make it complicated.  I do have a  seperate SQL box that I have to use backup exec on.  

Second, I'm a little fuzzy on if I"m missing anything I would need to restore a virtual machine from a .vhd file.  

Third, looking for any comments or suggestions on my backup strategy and what I could do to improve it.

Thanks in advance
2 Solutions
JHallidayChief Technical OfficerCommented:
Based on what you have stated in your post and the limiting factor of budget I think this is pretty much bullet proof.  The only comment I would make is that for your daily backups I would use a robocopy script over NT Backup for your file and print server purely from the fact that you can then use a simple drag and drop to move restore files but thats just my preference (I can supply you with my daily rotational script for that) other than that good job :)
It sounds like an awful lot of work and manual processes.... but given your budget, it may be what you have to do.

One thing most people aren't aware of that may be an issue to you, is that those inexpensive USB drives are not a good way to store data offline for long periods.   You may find that in six months or a year of no power, your ability to read data starts to become unpredictable (this is an issue to some extent with any hard drive that is not at least periodically powered up).

Depending on your need to go back a year or more (legal, auditing, etc), and the amount of data you have, archival quality DVD media (slow and hard to manage large number of disks, but relatively cheap), or DAT tape (used drives can be had pretty inexpensively, not fast, but reliable and bigger capacity than DVD) may be good choices.
FASPAuthor Commented:
Thank you for the input.

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