I second the vote for JungleDisk. I use it to push my documents and project folders to S3. My average monthly bill from amazon is about 20c.
All my projects are in Subversion on an external host.
As well as this, I am on a Mac, so I use SuperDuper to take a nightly image of my drive. I am sure there are good options in the Windows/Linux world.
I have two external drives that I rotate on a weekly basis, and I store one of the drives off-site during it's week off.
This means that I am only ever 24 hours away from an image in case of failure, and I am only 7 days from an image in case of catastrophic failure (fire theft). The ability to plug the drive in to a machine and be running instantly from the image has saved me immensely. My boot partition was corrupted during a power failure (not a hardware failure, luckily). I plugged the backup in, restored and was working again in the time it took to transfer the files of the external drive.