I gave up on the first idea; client was just being stubborn.
The better solution was using a 1TB HD, partitioning it into two halves, one for GRT data and one for non-GRT backups. Then I set the overwrite protection period to five days, and leave the disk connected. That way, we've got five days worth of backups, and no messing around with different drive letters.
For offsites, the client just connects a smaller USB drive to the server, partitioned in two as above, assigned to different drive letters to the above. A once-a-week job runs and does the backup to that.
It works quite well, and I've had no problems with overwriting the bloody Exchange backups - when the partition is full, it reclaims space and starts backing up.