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Here is how I back up my Kindle books.
1) I go to my manage your Kindle page
2) Each book has yellow button on the far right that reads "Action"
3) I choose "Download and deliver via USB"
4) I choose the same Kindle for all the devices
5) rinse and repeat.
I do this pretty regularly.
As for removing DRM, google Apprentice Alf and download Calibre. It took me 30 minutes to get the plug ins for Calibre up (Apprentice Alf) and running. The comments are helpful if you run into any problems.
I also store my ebooks on a thumbdrive and a back up hard drive.
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