Sazz,
Everything is on a local drive and the restore credentials are good to go. After putzing with the system for a few days I was finally able to get the system to do a successful restore to the RSG group. Now I can't be sure what did the trick, but after messing around with the RSG (creating, deleting several times) it finally took.
Thanks for your time and effort with this.
For those who are curious:
The restore group was created using the default selections from the Exchange Management Wizard (this put the recovery files under the associated store (Which was the third storage group I had for this case).
The Restore Database was mounted and the flag was set to have it overwritten by a restore.
In Backup Exec:
The restore job had the store selected that needed to be restored to the rsg. The Resource Credentials were the same that was used to backup the store. The Redirect Exchange sets was selected, I put the \\server_name in the restore to server line. Selected the redirect using VSS and the select for Redirect to RSG (exch07).
Thanks