When it comes to back-up it's horses for courses. For light home use back up of your data to cd or other such media is usually enough. More serious use, and I'd go the USB attached storage route (there are ethernet versions around too). The Buffalo is damn good, getting one myself soon for use at home. Above that is tape back up and then above that again is a full NAS. By full NAS I mean something like a
NetApp solution.
I work for an LEA in school IT support. Most of our school have at least a tape backup with a 5 day tape rotation. For MIS Data we offer (and most use) a remote backup solution to ours servers (NAS drives). The NAS drives are then backed up to a NetApp box which is itself backed up to another one 300 miles away. One of the schools tech's when he heard all that said to me..'well that is more then belt and braces!'.