First thing, currently Windows 2008 R2 is not supported with Backup Exec 12.5. So, MS Virtual Server Agent is not an option, as for that you would need to install BE or remote agent, on your host machine and you would require a standard BE license. You may go for SBS edition of BE and install it on the guest machine, but tape backup would not work, unless you can get robotic library detected by guest machines. So, disk backup is your option.

Thanks

A couple of somewhat OT points to consider since you're still in the planning stage--

SBS2008's native backup is incredibly efficient, and IME hands-free reliable. It's reporting (through SBS) and granularity (little provided or needed) are sufficient for many small businesses. Forget everything you know about NTBACKUP; this is a whole new animal. Only meaningful shortcoming I can think of with SBS backup vs. BEWS is there's no GRT for the mailbox. You have to restore the whole database. However, there's an inexpensive add-on that gives you a full-blown UI and reporting for it if you want it, and it offers GRT-type functionality as an option. SBS Backups are hard-disk only, but with Hyper-V, that's going to be a universal issue anyway. But you'll probably get months or even years of backups on a couple of 2TB external USB or Firewire drives, because SBS Backup backs up only changed clusters after the first backup, similar to Shadow Copies. Only reason to use tape these days is for archive backups. If that's not an issue for you, I'd think twice before using BEWS or any other 3rd-party backup in an SBS 2008 system.

Also, whether SBS or a "normal" domain, make sure you have at least one DC running on physical hardware, or when your Hyper-V host boots, there will be no DCs available until the guest boots. That's not a good config. Off-hand, I can't recall MS's support policy regarding SBS in a Hyper-V guest, but that's also something to research if you haven't already done so.

Here are the recommended szenarios for setting up SBS on a Hyper-V machine:

http://technet.microsoft.com/en-us/library/dd239210(WS.10).aspx

martin

It seems that BENT in a VM can talk to a tape attached in the root partition by iscsi...

Hi looking to impliment a similar senario, except the Host sytem will be Server 2008 (not R2). And I am looking to achieve solution with BE 2010.

From my understanding the best option would be to install BE 2010 on the host and let BE 2010 can take care of the the HyperV - VHD backups as well as the exchange Granular restore inside the SBS and data directories.

Two questions: Well three actually!

1. Is above the best way.
2. Does the Backup Exec 2010 for SBS licensing allow this or will I need additional agents etc? (What about if I add in another VM at a later date to handle the Sharepoint database - just how far does the licencing for the SBS version extend?) 
3. Will this also cover my SQL server database backups?

Cheers