Windows Server Backup and drive sizes

[Tripredacus]

I just started working with Windows Server Backup on Server 2008 STD x64. I am going to use the Remote Backup feature to back up the data off the other servers on the domain. I am able to connect to the Remote Server fine, but it gives me an error about the destination volume. So if you've used it, maybe I can get some answers.

1. Do I need to install anything on the remote servers in order to be able to back them up? I already created a new Domain User and added it to the Backup Operators group.

2. Is there a size limit to where the backups are going to be kept? Currently we have a storage volume (RAID5) that is 3.7TB in size. It was just formatted today and it is totally empty.