I can't believe you wouldn't use a UPS in Brooklyn! Start there.
Personally I just buy a new external Firewire HD every year, backing up my daily stuff onto this year and last year's drives. The two and three year old drives hold less up to date but contain crucial archival back-ups off site.
I just buy consumer level externals. I have grown to distrust LaCies and favor WD MyBooks. $224 for a 2tb w Firewire 800 -- about the same as what the 1tb cost last year. Right now I back up 900gb, so at this schedule I should have twin 2 tb drives when I crest the 1 tb threshold at the end of this year.
Laptop HD prices have plummeted so I am swapping out my MacBook Pro's 120 gb for 500 gb, putting the old 120 gb into a cheap USB external case. I'll take this and another small external on road trips for BU.
Trying Time Machine next, at least for my wife's computer.
I have tried Image Shelter for online management, rationalizing it made more sense than using endless external drives, but it is SLOW and the policies and viability of these companies can change things at anytime, as I sadly learned after spending two weeks setting myself up to sell Stock via Image Shelter only to have them pull the plug on that aspect of their venture with only a couple weeks warning.
Finally, part of the reason I post a lot of photos here and a few other sites is because if the worst happened, I'd still be able to pull enough 600-pixel images to make a useful online portfolio ;-)