I thiunk this is a Windows question, since I believe your problem lies
with Windows authentication. We deal with similar issue with NT IIS boxes
on the DMZ. In our configuration, we can't make those PCs members of our
domain, nor would we want to. And we don't want traffic initiated from
the DMZ, so we access the servers remotely using local credentials.
What you'd do is the reverse. You should be able to add a folder on a
server in your domain. Share the folder, and give permission to
"Everyone". Then, on your SQL 7 box, map a drive to that folder you
shared. Do backups on your SQL 7 box using a file device, and store the
file device on that share. Then just use a standard file backup utility
to protect the data. I've done just this, and had it work. Frankly, I am
a little paranoid, so I have also deliberately obliterated the server,
then restored from the backup, and everything went lickity split.
http://www.sunbelt-software.com/ntsysadmin_list_charter.htm