In our experience, the workspace backup  captures everything but custom
webparts and dashboard  content. Unfortunately, you are on your own to back
this stuff up and to restore it.

Can you tell me more about what steps I need to take to complete
copy/transfer a workspace  from one server  to another?

steps for taking backup  and restore
BACKUP
at Command Prompt.
Move to the SharePoint Portal server  \Bin directory. The location of this
directory depends on the location of the SharePoint Portal Server
installation directory.

If you are backing up to a local disk, go to step 4. If you are backing up
to a remote disk, you must specify a network access account. To specify this
account, type MSDMBack /a domain\user password and then press ENTER. You
need to specify this account only once.

Type MSDMBack /b "path_to_backup_file_name" [password] and then press ENTER.

RESTORE
On a differebt system with sharepoint portal server installed and service
strated.
at Command Prompt.
Move to the SharePoint Portal Server \Bin directory. The location of this
directory depends on the location of the SharePoint Portal Server
installation directory.

Type msdmback.vbs -r "path& file"
(path&file- here comeplete path where u r backup file  exists - file created
by the above back up process)

Once you have SPS installed on your Server, go to the following location:

Start, Programs, Administrative Tools, SharePoint Portal Server
Administration

This will open up the MMC to Administer SharePoint. Once this is open,
merely go to the Help menu. Once the Help menu opens, look under the
following location:

Administrator's Help, Backing Up Restoring and Duplicating Servers.

This is the entire Admin Guide for SPS