While this method of backup would work, recovery would be a nightmare as Photon eludes to. The files on that hard drive would be given access to certain SID's of users and/or groups - not actualy "usernames". So, assuming you rebuild the server from scratch after a disaster (which you have to because you are not mirroring the OS) you would then plug in the USB drive and move all of the data over. At this point, you would have to do the take ownership thing that Photon mentioned, which takes a LONG time. At this point, you would have your data, but it would be completely unsecured and unretreivable until you build your ACL's again. Just not an efficient way of doing things.
You should get yourself a couple of large USB drives (like you already have) and get some actual backup software. Even the free stuff would work. This would also give you the ability to go back several versions of a file if you wanted as well.
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