Phil,
a first thing I strongly suggest is to download the version 3 client for
Windows NT. It works much better than the V2R1 levels. It is also compatible
with V2R1 servers, so there should be no problem. (One thing: make sure the
compressalways option is set to no in the client option file).
When installed, there will be an icon in the NT Start menu that enables you to
setup the scheduler ass an NT service. This means it can be started when the NT
machine is started. This answers your second question.
For the reason why your backup doesn't work, you might want to check the
dsmsched.log file on the client, which will have more information on this
error. From my experience, it seams that most errors with NT clients are caused
by security issues. This again should work better when the scheduler is
installed as a service.

Best regards, Wim.

Wim FEYANTS
IBM Belgium
wim_feyants AT be.ibm DOT com