We're an IT company and have the following resources on our network.

SERVER 1
Active Directory
DHCP
DNS
WSUS

SERVER 2
SQL 2000
With Weekly Maintenance Plan which backs up .BAK files to the Data Drive mentioned below.
SQL 2005
With Weekly Maintenance Plan which backs up .BAK files to the Data Drive mentioned below.
SQL 2008
With Weekly Maintenance Plan which backs up .BAK files to the Data Drive mentioned below.
SERVER 1
Data Drive +/- 2 TB of which about 300MB change on a daily basis
SERVER 1
Source Safe VSS$ is also located in the Data Drive.

Can someone propose a suitable backup proceedure for what we have?

What is the difference between Incremental and Differential Backups?

What i have so far is the following.

Monday  - Incremental Backup (Backs up File with A attribute)
Tuesday - Incremental (Backs up File with A attribute)
Wednesday - Full
Thursday - Incremental (Backs up File with A attribute)
Friday - Full

Can anyone suggest something else?

With regards to tape rotation, we have about 60 LTO C7973A 800GB tapes.

The plan i foresee is when we have to restore something we could restore from the latest Incremental backup.
But if we have to restore everything we'll have to restore the latest full backup and hopefully only 1 incremental.

Any suggestion / pointers would be appreciated.

Thanks.