This is so common. You
must automate backup, because it's always the week or month or months that you haven't been doing it that disaster strikes. Hard drives are still the best combination of cheap, large and reliable.
Using IMAP or a web provider for email instead of POP gives you a built in backup. The same goes for using a service like Flickr or photobucket.
A few US friends have been recommending a service call
Mozy, which is an online backup service. The benefit here of course is if your place burns down, along with your backup drive, you're still somewhat protected.
They have a
free 2GB product, and for US $4.95 per month they have
unlimited storage. The only problem with the latter is that SOME Australian ISPs charge you uploaded traffic and backing up 100's of GBs would adversely affect most quotas.