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External hard drives on the same premises as the drive it is backing up is NOT a real back up.
You need secure, offsite storage too.
Mozy is good, I use it, but as it is free, it is not to be relied on.
I have a drive stored at a friend's house that gets a weekly update, Mozy and a mirrored bootable version of my internal hard drive.
Oh, and DVDs of massively essential data at my Brother's place.
You only need to lose data once to become this paranoid!
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