Thanks everyone for the feedback. I think I have figured out what is happening.
I can only guess what the process is, unless some one from AC tech support can confirm it.
1. AC Backup creates a folder a named <Practicename>_XXXX_<Date>_<Time>
2. It then backs up the AmazingCharts Database file (I would assume the .ldf and .mdf) to .bak file and stores it inside the folder created in step 1
3. It also copies all the ImportedItems to the folder created in Step 1
4. As it is doing this all this is being done through a .tmp file
5. It them compresses and encrypts the file and stores it as one file named as <PracticeName>_XXXX_<Date>_<Time>.enc file
6. Then it deletes the Folder and Zip file
In my case since the drive was running out of disk space as it wanted more than 300+ GB free it did not delete those files. I will confirm my findings tomorrow as the backup is running right now and I have left enough space on the disk for it to complete successfuly.
I see the following files in the AC Backup folder while the backup is running
File -> ckz_P5DX.tmp
Folder -> <PracticeName>_XXXX_010312_093019
I know lots of people have suggested using a third party software to backup the importeditems folder, I have used most of them like SyncToy, BackupAssist, JungleDisk, Microsoft Backup with VSS.... etc. I will throw two more in the mix which is Microsoft RichCopy, RoboCopy etc. But I am thinking that AC provided the option to backup the imported files with their utility for some purpose. I would rather have one program backing up my data instead of managing multiple programs to do the work.
Can some one on AC techincal support confirm / deny that it is not a good idea to use their backup utility if the importeditems folder is huge (Please define huge with a number like 10+GB etc) and use a third party utility instead.
Thanks.