Your second solution is correct. The ONLY thing that should be installed on the Windows host is the backup software agent.

Remember, you get two VM's with standard edition Windows. The second VM could be your domain controller. smile
(Comment from Bert regarding domain versus P2P in 5, 4, 3, 2...)

JamesNT

James Summerlin
My personal site: http://www.dataintegrationsolutions.net
james@dataintegrationsolutions.net