Hello,
As Bob always says... don't keep all your eggs in one basket. (I'm paraphrasing, but this is the jist of it.)
I've had very good luck with a piece of shareware called Argentum Backup:
http://www.argentuma.com/
It's very simple... I set it up by pointing the interface at the local directories I want to include in a back-up (i.e. My Documents, Desktop, E-mail identities, my little USB Flash Drive, my Favorites)... and once a month I plug in a external harddrive and click ''go''. When's it's done... I take that USB drive and throw it in a firesafe.
It can even be set to back-up automatically, allows for different back-up ''jobs''... allows for zip compression or direct file copying.
Becasue I don't trust even the USB drive to run forever, I do the occasion back-up directly to DVD-RW. It's just a matter of changing the back-up's location in the Argentum program.
The nice thing about the program is I can also set it to back-up an entire directory minus any specified folder. (For example... I might not want to include ''My Videos'' in each monthly ''My Documents'' back-up).
To answer the orginal question... there is a piece of software called "Folder Guard", it can be used to lock up specified folders with a password. It actually makes them "disappear", even to Window's search engine when in the "locked" mode. Back in the day, there was a "lite" version that was free... not sure if the free version still exists.
TTFN,
~Wayne