Hi Ollie,
There is a redundancy section in the lookout online help. Just go to the Help>>Content>>Set Up Redundancy to learn more. You'll see there are two objects that lookout has to support redundancy - one monitors the heartbeat or the primary machine and one load the secondary process when the HB is lost.
There is even info how to set up clients, so that they can automatically switch from prim to sec machine.
As for the database, yes you can stream to the same database, just set the target place in the Options>>System. However, there is a catch. The trace names in the database include the computer name - thus the same object from two different computers is stored in the database under computer specific name. For example \\primary\process1\pot1 and \\second
ary\process1\pot1.
Check this article, there is some info on merging prim and sec databases:
http://zone.ni.com/devzone/conceptd.nsf/webmain/384A0F9E67CE705F86256B4700797EF3?opendocument&node=DZ52189_US
I hope this helps.
martin