Yes, that's correct.   So for ASM/ME snapshots you want to keep between backups, use COPY.    You then probably want to set BUE to truncate/checkpoint your SQL logs when it does the backup.  Have you also looked into the ADBO feature in BUE2010?   That would create a snapshot, checkpoint it optionally, and then the BUE server would directly mount the snapshot  vs. going through the agent.   This tends to be faster and less load on the SQL server.   
Quick question about ASM/ME with SQL 2005 on Windows Server 2003 VM. I have a log volume and database volume on the EQL group mapped in the guest OS.We currently have BackupExec 2010 running a full backup of a SQL 2005 server once per week and a differential backup daily. If I use the ASM/ME to create a Smart Copy it puts a checkpoint in the SQL logs such that the next BackupExec differential backup fails:Final error: 0xe0000363 - The Backup Exec SQL Agent was not used to create the last full, differential, or log backup of this database. You must use the SQL Agent to run a full backup before you can run a differential backup or transaction log backup.Am I correct in thinking I must modify my Smart Copy schedule to use the Backup Type: Copy? I’d like to have the option of restoring either from tape or from the Smart Copy. Will the Backup Type: Copy allow me to restore correctly? I only ask because the docs say:Copy—Specifying this Backup Type does nothing to the SQL database log file, and is best used when creating a Smart Copy of a database that is not intended for restores. For example, you can specify this Backup Type for a database used as a reporting or data mining copy that will be discarded.I suppose my other option would be to just run a daily full SQL backup in BackupExec. This would be fine now but could cause problems should the database grow sufficiently large.
Auto Snapshot Manager/ME and BackupExec coexisting