With the ever-increasing amount of data that people have (and rarely backup), the storage capacity of the backup solution is steadily increasing (or more precisely: exponentially where it comes to digital multimeda).
Once upon a time, a 1.2MB floppy disk was a significant storage capacity, then along came CDs, Zip drives, DVDs and I could go on and on. There is a worrying trend that I am observing of people using USB keys, not only as a backup, but as the ONLY copy of their documents. These devices are great for file transfer – they are compact, with pretty impressive capacity these days, and fast. They also fail, and when they do so, there is very little that can be done to reclaim the data on them.
So use them by all means to transfer files from one place to another, but please, do not trust your only copy of a file to one!
Where it comes to backing up, there are a number of better options. A high proportion of users would have less than 4GB of data in total, so the low cost solution of burning a DVD is certainly a good choice. If you need larger capacities, (such as for large photo libraries, music collections etc), then an external harddrive becomes a cost competitive solution.
Something like this drive from Maxtor is a good choice:

It is small and light (around 170g, 125mm x 80mm x 15mm) and runs off the USB port of your computer. It doesn’t need to be plugged into the wall, as it draws the power it needs from the USB port.
There are different models with different capacities, up to 320GB. Inside is simple – it is a laptop harddrive, and that is why I regard them as being a good backup solution. (Note I still say backup – I don’t trust any file to one location only – you should always have AT LEAST 2 copies of every file, (unless you don’t care if you loose it)).
This isn’t the only type of external harddrive that is available, and chances are if you’ve already purchased one through ArtsIT, it wasn’t the Maxtor – I chose it to show here as it is a good example of this type of backup solution.