I did that unintentionally when I first set the NFS. It wasn't showing that it was successful. So, I created another mount point /Backup to the same path. Now, whatever I create or delete on /mnt it would reflect on /Backup and it's reflected on the server side by NFS
That's why I'm concerned and had to make sure you understand the situation
So /mnt cannot be excluded,
and /mnt/Backup.flar should not be used.
To clarify the mount points, run
df -kP
Do you have the NFS handle mounted??
showmount only tells you what's available at a NFS server, NOT what is mounted.
You have to use the mount command to mount the remote NFS handle.
Now create a sub directory
mkdir /mnt/Backup
and change your flarcreate command accordingly, i.e. exclude /mnt/Backup and use /mnt/Backup/Backup.flar
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Looks promising. Let it run ... might take an hour.
It is compressed, thanks to the -c option.
And I think it only contains the packages, not extra files that do not belong to any package.
That does sound small. You can use flar to list the contents of a flash. I would do that to see what you have there
Well, you said it was a 80GB drive but not how full the filesystem(s) are. It's possible I suppose.
So, this problem is solved right?
If you have a new problem, please start a new topic 
You're right.
I should start a new topic. And hopefully will be the knockout for this case. 
Create a new topic and link to this one if required or deemed a good idea.