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I backup onto two internal drives on my PC. I also backup onto two external USB hard-drives. I only ever plug one of them into the PC at a time. That way, if I get hit by a lightning strike in the middle of a backup that somehow gets past my UPS and fries all the connected drives, there's always the disconnected one to fall back on. My "offsite storage" consists of keeping a USB drive in the glove compartment of my car. If the lightning strike burns down the house, garage and car.... oh well.
A more likely scenario is someone steals the car or breaks in and takes the drive. To deal with that, I use Folderlock to encrypt the drive.
I've got a few really really important files on DropBox, SkyDrive and Google Drive that get backed up in real time.
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