Sorry - I used the wrong terminology. The reason I have to run a filegroup backup is because the full text catalogs are not online, not 'uninitialized'.

By using Windows authentication, instead of SQL, I no longer get the error.

The transfer will now run, provided I opt to transfer all logins. If I try and specify All...

Thanks Pam and Michael.

Looks like there should be no real show stoppers, which is what I was hoping.

Thanks Gail, good to have confirmation