Although the PC side of the SPB backup still does not work for me at all, I was able to back up to the PC by initiating the backup on the Omnia itself. However, the backup report contained the following message:
"Warning : File could not be included \POCKETFS.SYS"

Don't know what this file does but if I have to do a hard reset and this file isn't restored, what will be the consequences? I did some research and it is reported that this message appears, not only with Sprite Backup but also with SPB, Resco, and every other backup program tried. It appears to be something about the Omnia because all references to this backup warning were reported on the Omnia.
What about it guys? Are our back-ups in jeopardy? How should we deal with it if they are?