Yes, the following is from the TDP for SQL Version 2 User's Guide:

The extent to which TDP for SQL Version 2 changes the backup naming
conventions, file space names and placement, and meta contents means that
it is completely incompatible with TDP for SQL Version 1. You cannot query
or restore backup objects created by one version with the other.

Therefore, if you are storing backup objects created by Version 1, you must
retain Version 1 for as long as you retain those backup objects. Both
versions can coexist with each other. The Version 2 installation program
will not replace any installed Version 1.

In addition, the TDP for SQL Version 2 interfaces are not compatible with
the Version 1 interfaces due to the great number of functional changes in
Version 2. No migration tool is provided to help convert Version 1 command
line scripts to Version 2 syntax.

Note:
Before automatically converting to TDP for SQL Version 2, users should have
analyzed their backup and restore procedures to assess how and where the
new capabilities can be applied.

Bob King    IBM Global Services
bobking AT us.ibm DOT com

From Mark Stapleton:
>Robert L King wrote:
>> However, TDP for MS SQL 1.1.2 can do full and log backups of SQL 2000
>> databases. There are many other features and capabilities that make
version
>> 2 worth having but version 1 will do the basic backups and restores.
Keep
>> in mind, though, that backups created by version 1 cannot be restored
using
>> version 2, only version 1.
>
>Are you sure about that? It would contrary to the normal legacy
>privileges of TSM; that is, newer versions of clients can restore data
>backed up by an older version, but not the other way around.