After my trials and tribulations with Western Digital MyBook external drives, yes that’s plural, I started looking around for alternative storage solutions and decided to go the route of “cloud” storage.
I’m now running JungleDisk which is a Windows Tray application using Amazon’s S3 service for storage. JungleDisk is $20 (one time purchase with free lifetime upgrades) for the Desktop Edition that I’m using, includes Windows/Mac/Linux versions, can easily run from a USB key and can be installed on unlimited machines with one S3 account. JungleDisk is a Windows tray application that, when installed and connected to S3, adds a new drive to Explorer where you can easily copy files like you normally would albeit slower and at a price. It took me a few weeks worth of uploading batches of photos at a time but eventually I got all ~65GB uploaded. I’m now paying roughly $10-$11 USD a month for storage of said of photo’s.
JungleDisk Monitor, the software that runs in your Windows tray, comes with backup features that will automatically synchronize your local files with your S3 account though some of the terminology is a bit terse and the UI isn’t exactly parent friendly but it certainly gets the job done.
[Update: Oct. 21, 2008] Added a few more details about JungleDisk (cost etc.)