Yes, it does allow for selective backups. I think you've been misled by your colleauges there a bit. Have a look, you might be surprised what you can do with it.
No it doesn't... I have Vista and Win 7, and used the SBS Backup as part of Server 08. It DOES NOT allow selective backups. We have over 30 clients using NTBackup - that allows selective backups, The new backup solutions on anything Vista or higher do not, its all or nothing with them. At work my role is Helpdesk Manager - where my primary role is to monitor and manage 40 of our 'monitored' clients backups and server status - im very familiar with NT Backup, BES and Server 08 intergrated backup solution.
ntbackup is part of the defualt windows install, but it can be removed during an advanced setup if someone felt the burning need to save a megabyte when doing your install. You can do a install from the XP CD, or if your OEM didn't provide a disc then its easy to get a copy of it online.
Nop, it was a clean install from our Action Pack subscription (This client is located in the same office as Geek, thus we provided their IT needs...free of charge in return for building rent and free tax returns :D), for whatever reason the 'clean' (By clean I mean a year or so) install didn't install NTBackup. No biggie, I've already gotten what I wanted to do within the batch script.