Keep in mind the backup cron runs as the web server user so the location has to be writeable to the web server user. You should be able to set that in workgroup manager (Sharing -> All -> set Access on folder). The web server user should be under the Local directory (netinfo) not your regular directory (probably LDAP).
I'd suggest using /Users/admin/Documents/Backup for your location. That's just personal preference though.
-- S
Backup and restore
Backup path for a Macintosh XServe
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