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server 2003 with sql 2000 error 0x800423f4

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Yes, I thought that was a nice ironic message. To fix the back up software use this fix but back everything up first...

We've used sql for it's own backups but I'm more interested in backing up the system state because that machine doubles as a domain controller.

The problem is that our company policy is against using third party software as much as possible.

What are the implications of dropping the recovery mode down to simple?
If it'll work I'd rather do that than use non MS backup software.

The weird thing is that the system state backup still gets to over 900 MB even after failing and our other DC only gets to 800 MB so I want to unpack the backup and see what all it contains.