Kevin,
I am not sure if I can help, because I am not sure exactly what you are doing. First, when you say "my offsite backup" what are you referring to? You had said that you weren't using the AC .enc files.
If you are using an offsite program which backs up only changed files, you are most likely not backing up the main system databases such as master, msdb or model but probably only the AC instance. Most 3rd party software, if not all, will offer addons to back up things such as Exchange Server and SQL. Consider that Acronis which makes a beautiful SQL backup program retails it for over $600. This is just to image the SQL Servers, nothing else. Of course, this makes restores extremely efficient and safe.
When you back up a SQL database, you generally back it up to a .bak file. In fact, if you run your database tuner, it will back up your databases into a .bak file in your Backup folder. You will not be able to run this daily, however, and use it as your backup (well AC corporate could) as you would need to have access to SQL Server Management Studio (which you can download free for SQL Express). But, then you need the sa username and password, which you don't have.
All of this begs the question why not use the native backup program which comes with AC. I may be mistaken, but I believe it only backs up the user databases such as codes, meds and amazingcharts. I think I must have written a novel and disagreed with at least ten users, but here is where it comes into play. While you can back up everything at one time, why not split the imported items so you aren't backing up 14GBS, which of course, you can't do offsite. You could do one backup locally and offsite with the AC backup program and then one local backup of the whole program including the imported items locally. I think offsite backups are overrated anyway, but that is just my opinion. Restoring from the .enc file is simple and rather foolproof.
But, it seems what you are doing is fine only you lose me at a couple of places. It seems as though your fresh "dummy" install is to install SQL Server Express. OK. Then you download your saved version to a different directory (just the program with its databases). So, here you say start up AC and point to the AC2 directory. Start up which AC? The dummy one? You already have AC2. Just connect it to SQL. Of course, you would use the utility to reconnect if possible. But, if that doesn't work, can you do it this way?
Install dummy practice. Detach and move the databases to another site or the recycle bin. Detach and move the databases from AC2 into the AC folder. Start up AC.