For more than a year I have been promoting the use of Windows Home Server as a local backup solution in a Small Business Server (SBS2003/SBS2008) environment (per these two blogs: blog1 , blog2). I already have WHS installed at most of my SBS customer sites.
It now seems as if Microsoft is now willing to say “Yes” — that using WHS to backup your workstations and servers is a viable and supported scenario! Read more on Microsoft’s Technet site.