I should note that the above scheme isn't the cheapest. In order to preserve a decent amount of history, TM needs about 1.5x more space on the destination drive than the amount of data that is being backed up (in my experience, for the rate a which I change data). And I need three drives that size once we count in the off-line and off-site disks.
Right now, that's 3x 750GB. Before the end of the year, it'll be 3x 1.5TB (and some of those 750GB drives will become current storage and/or clones of my boot disk).
ON the flip side, however, remember that there are only two kinds of hard drives -- those that have crashed, and those that will crash. And you'll fumble-finger-delete the wrong file with distressing frequency. Or need to recover from installing the wrong thing (or an upgrade that doesn't work, or...).
If you have important data, good backups are not just a luxury. They're a necessity.
Xenophon
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