How to protect digial photo library

The first thing my wife and I did when we found out we were pregnant was buy a new digital camera. We bought a nice Canon PowerShot S3 IS. We take a ton of pictures and videos (we even sometimes upload them to youtube). It has become increasingly important for us to backup the picture and for a while I would burn them to DVD and take them to our safety deposit box. This did not last long as the library got to large to fit on a reasonable about of DVD's. I then came up with three possible solutions:

1. Manual Backup to an external disk. As the cost of these disks continues to fall this works well and is not very costly. You do run the risk of loosing pictures if your computer crashes and you have not backed up the library in a while. It is possible to schedule the backup if you keep the computer on all the time. Alternatively a backup script can be run every time you login to your computer, but that may get annoying quickly and required the external hard drive to be on all the time and increases the risk of drive failer.
2. Hardware RAID in a computer. RAID (Redundant Array of Inexpensive Disk) has been used by corporations for years. There are several RAID levels, but most consumer level computers these days will run level 0, 1 or 5. RAID 0 uses 2 disk simultaneously to increase speed of the computer, but does not provide redundancy of data. This is good for computers that need speed, such as PC gaming or video editing. RAID 1 also uses two disks, but in this configuration one disk is an exact copy of the other. This is not any faster, but if one drive crashes the other should still have all the data. Finally RAID5 uses 3 or more disks. It writes the data across all 3 disks, but keeps parity so if one disk is lost the data can be recreated from what is on the other two disks. RAID5 is the best option but the most expensive and can be slow so RAID1 may be the work best for most people.
3. NAS device. A NAS (Network Attached Storage) again has been used in by corporations for years and is now becoming more popular for home use. As people start having more then one computer at home as well as devices like XBOX360 and Playstation3 having pictures and music even movies available on the network all the time can be very useful. Many of the consumer level NAS devices available have built in media servers, iTunes server even FTP options for remote access to files. The can range in price from around $100 to $500 without disks.

I chose option 3 and purchased a DLink 321 NAS and two 1T SATA drives. This gives me 1Teribyte of storage and automatic data redundancy. The DLink was available from several on-line retailers for about $100 and the 1T dives were also $100. So my total cost was $300 plus tax and shipping (the drives were free to ship but not the NAS from the etailer I used). The DLink 321 has a power saver option which spins down the drives after a set amount of time to save both power and wear and tear on the drive. That being said, I do plan to buy a third drive in a couple of months and swap one out so the drives have different hours of use just to make sure. I also plan to manually backup the data and store it in our safety deposit box periodically.