How do you define site? Yes it can replicate betweens servers in the same or in different Active directory sites
I'm defining it as a single domain. If I understand correctly, we could use DFSR to create backups or mirrors of our primary shares on other server(s) in our office. We've been wanting to add some redundancy to our network and this looks like a great solution.
I really appreciate the fact that I can speak directly with you and others at Microsoft. Getting sort of "inside" information from the people that actually develop these products is extremely helpful.