Config time machine server to create folder backups, not sparsebundles?

I just upgraded to OS X Lion server.  It has two hard drives, an OS X drive and a fileshare drive. 
Two of my macs connecting to OS X Lion are on Lion, one is on Snow Leopard.  The Server is connected via ethernet to the network, as is one of the 3 macs.  The other two are connected wirelessly.
When I turn on the time machine service for all 3 macs, Lion Server creates the backup dirctory on the fileshare hard drive with no problem.  The Macs can all see the backup directory and backup with no issues.
However, I expected the backups to be file directories (like a time capsule), but got sparsebundles.  Is there anyway to configure Lion Server to backup to a directory structure (e.g., backups > backup date > folders) vs. sparsebundles?

@camelot I'm basically trying to use a central server to backup all content on my network, including TM backups.  If I have a fire or theft and lose everything, I can grab the TM backups from CP, copy them down to several hard drives, and restore to new macs.
Given all non-connected backups are sparsebundles, I will just turn TM off on each machine and then use applescript to open all the bundles on the server.  Once opened, will use applescript to copy the contents to the fileshare and let crashplan upload them over the next week or so.  Then once it's done I can setup a schedule to do it again on a every week or 2 week basis.  Going forward, CP will recognize the duplicate files and just grab the new files from backups from the past period for all the TM sparsebundles. 
@camelot thanks again for the helpful reply.

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