It turns out that when you install sp 3 on 6.5 it downgrades btrieve to
7.9. I just re-installed arcserve and restarted the server having
selected the option to install betrieve 8.5. I am now able to merge and
create databases with the tapes, something I couldn't do with 7.9. also
in the Backgroundtreads in the bti.cfg under sys:system I changed it
from 3 to 25 and also changed Maxworkerthreads to 25 from 3. Also
changed the cachesize to 419314 since 20% of memory must be assigned to
cache. We have 2gb ram on the server. It looks like we are going to have
to add another 1gb because in the health monitor on the portal it is
showing low available memory.

I won't know if the database is correctly created until tonight, but it
looks promising.

Hope that helped.