Fortunately, the price of big hard drives continues to plummet and there are software solutions that are cheap, reliable and easy to use. For instance, a Seagate 1.5 TB USB 2.0 drive goes for under $230. (If you're used to using a firewire drive for editing, this isn't necessary for a backup drive. USB 2.0 is plenty fast and the addition of a firewire port can boost the price.)

For software, you can check out memeo's autosync. I use it to maintain a duplicate of any project I'm working on. Once the initial sync has run, the program only backs up changes you've made which is usually a quick process. Also since it's syncing the drive, there is no file compression introduced. Backup compression isn't necessarily a bad thing, but if I need to restore a file it only entail a simple copy procedure.
At $30 it's also cheap and offers peace of mind and huge labor savings when the hard drive catastrophes occur.
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