I learned the hard way in 1996 about this, so I'll tell you now before you go too far: don't use LZX for backups. If you must use an archiver, use LhA.
The big issue (which affected me) is a 255 character path limit. See here:
http://xavprods.free.fr/lzx/limitations.htmlThis lost half my work partition with 32 character file names, it'll be a file massacre with SFS and 127 char files.