The VM isn't an issue (my BackupPC has run in a KVM guest for over two years), 
but using "file-based" storage (a filesystem inside a file stored on another 
filesystem) is extremely inefficient (we recently ran benchmarks on file versus 
raw device... the performance is awful in comparison).

Use a raw device (raw disk, LVM volume, etc) with the virtio driver.  Your OS 
and backup storage can reside on the same raw device, or they can be separate 
raw devices, or if you insist, the OS can be virtual file storage.  We just use 
raw devices (LVM logical volumes) for everything.

My disk configuration looks like this (virsh dumpxml <guestname>):

     <disk type='block' device='disk'>
       <driver name='qemu' type='raw'/>
       <source dev='/dev/diskbackup/diskbackup'/>
       <target dev='vda' bus='virtio'/>
       <alias name='virtio-disk0'/>
       <address type='pci' domain='0x0000' bus='0x00' slot='0x04' 
function='0x0'/>
     </disk>

"/dev/diskbackup/diskbackup" is a logical volume named "diskbackup" in a volume 
group named "diskbackup".  (I didn't configure this... traditionally, this 
would be "/dev/vgdiskbackup/lvdiskbackup" or such.)

-- 
Carl D Cravens ([email protected]), Ext 228 (620.327.1228)
Lead System Architect

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