As Craig mentioned, VSS does not use SQL Server. There is a product (Vault) that does use SQL Server to store the files: http://www.sourcegear.com/

I have no experience with it, but the comments that I've heard/seen for this product are good.

>Thanks. I am very new to this, so I appreciate your patience. A few more questions....
>
>VSS does work with SQL, correct? And, is there any file size or file number limit as to what VSS works well with or is slow with?