Today the Windows Home Server team is releasing a small update to the product. The update improves the capability of Windows Home Server to repair abnormalities detected in the home computer backup database. The update should be automatically downloaded and installed on your home server over the next several days, if you have Windows Update turned on. You can check if you have Windows Update turned on, by opening the Windows Home Server Console – Settings – General page
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Maybe this will fix the problems I am having opening up backups via Windows 7.