Ok, it's morning in the USA now! :)
Only thing I'd maybe add is that you probably don't need your multiplexing up to 7 unless you think your clients can feed the data that fast, but even so I don't think your LTO1 library can keep up with that pace. I'd go with a mulitplexing of 3-4 to start and see where that gets you. If you enable multiple data streams on the Exchange policy, you should have four streams total (if your selection is "All Local Drives", you should have System State, C, D, and E). As for your file server (i.e. master server), multiple data streams on that will only give you 3 streams if you have the selection list set up as "All Local Drives" (System State, C, D).
What I'd do for your file server (especially if it's the only client in the policy right now) is set up the selection list like such:
System State (or Shadow Copies):\
C:\
D:\TopLevelFolder1
D:\TopLevelFolder2
D:\TopLevelFolder3
D:\TopLevelFolder4
This way when you start the backup of this client, you'll actually have 6 streams coming off of it (4 of them from your D drive). I think you can also accomplish the same thing by putting D:\*, but I can't remember if that's the exact syntax or not. Be careful with wild cards! ;)
Does this make sense?
Lance