From what I've read in the Netware Options manual, the Include and
Exclude Statements are processed from the bottom up.  Try changing the
order of them

>----------
>From:  Fitzsimons Bill MSM SUPH US[SMTP:william.fitzsimons AT USSU.MHS.CIBA 
>DOT COM]
>Sent:  Wednesday, 25 September, 1996 12:35AM
>To:    Multiple recipients of list ADSM-L
>Subject:       Netware DSM.OPT Files
>
>I'm new to ADSM and am a little confused on how the DSM.OPT file is
>processes for the Netware Client.
>
>Below is a copy of one of my options files.  I am trying to exclude all
>directories except for the 2 listed with the INCLUDE statements.   When I
>monitor the incremental via RCONSOLE I see all files and directories being
>sent as part of the incremental backup.  The client is at level 2.1.03.  Are
>the EXCLUDE and INCLUDE statements case sensative?
>
>Bill Fitzsimons - Dazed and Confused
>Ciba Pharmaceuticals
>william.fitzsimons AT ussu.mhs.ciba DOT com
>
>
>COMMMETHOD               TCPip
>TCPSERVERADDRESS         128.246.188.24
>TCPPORT                  1500
>
>
>*  Setting Nodename
>*  -------------------------------------------------------
>
>  NODENAME                  MAILPO5
>
>*  Recommended exclude list for NetWare
>*  -------------------------------------------------------
>*  (Note: the Bindery is backed up with "sel bindery" command)
>
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\net$obj.sys
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\net$prop.sys
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\net$val.sys
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\secaudit.log
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\events.log
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\system.log
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\btrieve.trn
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\tsa\tsa$temp.*
>EXCLUDE                   mailpo5-ph-ussu\sys:\system\sys$log.err
>EXCLUDE                   mailpo5-ph-ussu\sys:\vol$log.err
>EXCLUDE                   mailpo5-ph-ussu\sys:\tts$log.err
>EXCLUDE                   mailpo5-ph-ussu\sys:\*
>
>INCLUDE                   mailpo5-ph-ussu\sys:\po03ussu\mailpo\maildata\*
>INCLUDE                   mailpo5-ph-ussu\sys:\po04ussu\mailpo\maildata\*
>
>
>*  NetWare Password File option
>*  ---------------------------------------------------------------
>*  The following option instructs the NetWare client to encrypt the
>*  userid and password used for backup/archival operations to a .pwd
>*  file in hte installation directory.  ADSM uses this file for
>*  subsequent connections.
>
>NWPWFILE YES
>
>*  NetWare Screen option
>*  ---------------------------------------------------------------
>*  The following option instructs the NetWare client to destroy
>*  the ADSM screen when quitting the dsmc program.
>
>NWWAIT NO
>
>*  Subdirectory Option
>SUBDIR ON
>
>*  Compression
>COMPRESSION ON
>
>*  Domain
>DOMAIN MAILPO5-PH-USSU\SYS:
>
>*  Update Transmit Byte Limit
>TXNBYTELIMIT 25600
>