Purchase a backup drive from SimpleTech and backup all your files once a month. This is great for photos as well. I have a seperate one for that rather than using CDs. This way you can use a different computer as you have this light weight drive.
I use Mozy backup and also have a portable hard drive which I backup to once a week. I do once a week because I have many files that change on a daily basis and I don't ever want to loose more than 1 weeks work.
I've been using Carbonite online backup for over a year. Most software programs allow a free trial period. During that time, pick a few files to back up instead of the whole computer. Then try their 'recovery' as if you lost a file to see how difficult/easy it is. Also, Google their reviews. If someone is seriously unhappy with a product, they are usually vocal.
I use an external backup drive. It cost to install originally but the backup is automatic nightly around 3AM when I know I won't be on the computer. The free software is SyncBackSE through BrightSparks.
After my computer gave out on me, I realized how how should be more careful and save my documents more often. I purchased the HP Simplesave 320GB external drive at Costco Canada here a link. It's great, it's fast and it's simple. I'm sure they have the same/similar in the USA. I try to backup everyday or at least when I have new documents.
What software or tools are there to backup?
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