There's an option in backup exec somewhere to use software compression or not, but I think the default option is to use software compression if hardware doesn't work... or something like that.
Just make sure that you're not using BOTH hw and sw compression. This can actually decrease the amount of data that you will be able to fit on the tape.
Use HW Comp. only.
Also, if you are backing up already compressed files (*.zip, *.rar, *.mp3, *.shn), this could also reduce the amount of data you can fit on a tape.
Think of it like this: You have a 5 page letter. You fold the papers up all nice and neat and put them into an envelope. Great, it's smaller! Well, if you put that envelope into another envelope, it will get bigger. Eventually you're going to need a bigger envelope and so on... it keeps getting bigger.
Well, I've rambled enough, I'm sick and trying to kill time waiting for my shift to end.
Good luck!