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The directory must be exist, try to make the directory before the find command:

mkdir -p /home/bkups/$string

Regards

Remove the ">" in the cpio command:

find [a-z]* [0-9]* [A-Q]* /home/SMB-2000/* -print |cpio -ovm /home/bkups/$string

Edit:

I think I'm wrong, you don't use the -p option so the redirection...