Backup: Online Backup Services: Backjack is a favorite. Great review. Online backup is the way of the future, but obsessives like me won't rely on it yet. For now I see online backup as an alternative to rotating a hard drive offsite.
So I'd recommend local backup to a big hard drive (or NAS), use an online photo service that will mail a DVD (SmugMug for example), burn photos periodically to DVDs and consider using an online backup service as an alternative to rotating the onsite drive backup offsite.
The cost of backup is very large. Backjack will charge around $1000 a year for a large backup store (!), but that cost may be exceeded by the hassle of dealing with flaky backup software, etc. It's not a good situation now, and everyone is waiting to see if Google will help us out.
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