Long time lurker... First time poster!
I'll throw my .02 into the discussion and throw my vote behind Acronis True Image. I've used Acronis as my imaging tool exclusively since 2003 and completed restores on dozens of computers. Before Acronis there was a long list, but Acronis was the most reliable and didn't require installation of any 3rd party software.
Now, I'll take this a step further and detail my current backup method. I purchased Windows Home Server in 2007 and installed it on an old PC I had laying around. I've since built a machine dedicated to WHS and run 3TB of storage. Total cost is about $500, but the best 500 I've ever spent! WHS creates a daily image of up to 10 PCs on the network without any user intervention. It also allows network shared storage. WHS allows duplication, which stores the data twice - on different drives in the storage pool.
1. All images are stored locally on my computer.
2. All images, personal documents, music, and websites are copied to the appropriate share on WHS. Duplication is enabled on these shares so the content is stored twice for safety.
3. WHS creates an incremental image of the computer (and the others on the network) daily.
4. I still use Acronis once a month and create a new/full image to an external drive which I store at work.
This method is bulletproof and I don't have to rely on a third party off-site service or an internet connection for backup/restore. All photos, music, documents, etc are also available to any computer in my house.
1. I don't worry about hardware failure in the PC, as I have the ability to restore from the WHS.
2. I don't worry about image corruption or deletion on the PC as I can quickly pull from the WHS storage.
3. I don't worry about hardware failure in the WHS, as all important data is duplicated.
4. I don't worry about catastrophic failure or events because the original PC has been imaged to an external drive. I can restore the image, or extract any files I need.
I actually take the laptop with me about 80% of the time when I leave, so the window of opportunity is very small. BTW, I'm most afraid of the zombie attacks - they freak me out!

