Below is the fix from CA email Tech Support. I did this about a week ago and all is well... so far.
Check the Btrieve.nlm and for the Version 7.x or above Locate the Bti.cfg
Under sys:system and verify the settings with the Doc at the URL
Make Sure that there are no other Applications Running on the server that
Use Btrieve Other than the Arcserve before Making these Changes
Edit the Following Values in the file as follows
ìMicroKernel+
MaxFiles =250 (default is 20)
MaxCursors=150 (default is 60)
MaxCursors=150 (default is 60)
CacheSize=65536 (default is 1024)
MaxClients=150(default is 30)
BackgroundThreads=25 (default is 4)
ìBtrieve Communications Manager+
MaxWorkerThreads=25 (default is 3)
MaxClients=150 (default is 15)
Reboot the server reload Arcserve