>The client PC applications run continuously, the server backups happen about every 10 minutes. The database table is about 60 Meg with 33,000 records.
>
>We suspect a conflict between the copyfile and the update as the errror appears to happen when the two coincide.

Most backup software, unless friendly to the specific file type, will attempt to gain temporary exclusive access to each file it copies. I would bet the farm that your backup is causing this. Is a backup really necessary every ten minutes? I owuld think about some other method of data security; ie- mirrored drives.