I ended up purchasing the Western Digital My Book (320 gig). This has helped me stop worrying about the years and years of digital photos that my wife and I have accumulated. I have also started backing up my music ... it is truly a relief I can now officially rest easy. I guess I should consider offsite backup but there is a point of diminishing returns when it comes to backups.
I was very disappointed that Western Digital (WD) only include the basic back up software with the more expensive units. I am going to continue to use the XP back utility. I may try modifying the startup initialization file on the My Book in order to run XP backup utility automatically when I connect it. Not sure if that will work!
"All men profess honesty as long as they can. To believe all men honest would be folly. To believe none so is something worse." - John Quincy Adams