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Have you used SATA or USB Tape Backups successfully?

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You mentioned that you don't have the budget to invest in a SCSI controller? As long as there is an available slot in the server, there are good SCSI controllers available for less than $100.

There's even an HP DAT72 tape backup New/Refurb-In-Box on eBay cheap. It's the USB version. I've used USB external drives a couple times, and my only complaint was speed. That was mostly an issue for restore; backup was overnight, "set it and forget it" and speed didn't matter. It was done by morning. Restore requests were somewhat of a pain, but again, just start it and walk away. But the SCSI drives tended to run noticeably faster.

Also, if the old server is being phased out, can you scavenge the DAT72 from the old server into the new server? That would seem to be the lowest-cost option.