A Custom backup gives you the most freedom. For example, you can back up your entire host hard disk to a tape you formatted and named ``MYTAPE''. Later the same day, you could run another custom backup to only back up, say, your PROJECTS directory to the same tape. The custom backup lets you decide what tape to use.
The custom backup also allows you to set a job to automatically run at regular intervals. If the job is one that you want to perform regularly, it is easier to have SCO ARCserve/Open automatically reschedule the job to run, rather than you having to submit the job everyday. You can use this feature to create your own rotation cycles.