Yea, I hate these sort of issues. What I almost always do is burn backups of all my important stuff. But I am seriouly thinking about backing up off site. With this one place its a good price, and I hear they are really good.
http://www.bytefortress.net. If they are as good as they say, I think I am going to phase out dvd backups for that service.
Sorry to hear about your friends HD issues though. I hope everything is working out with it.