Hi J.,
I used to just back my pics up to my husband's hard drive across our network, but I prefer the security of having them in several places. Hard drives fail, cd's can get ruined, servers can crash. It may seem a little like overkill, but I use a 3 way back up system.
Every time I move pictures from my camera to my laptop, I upload them to Shutterfly via their desktop application (Shutterfly Studio). I like this because I can edit them in Studio and then upload them with just a couple clicks. Shutterfly also gives me the option of posting those pictures to a personal photo sharing site, so my family can go directly to that and view/print/save pics from there. Shutterfly is free (Yay free!), I have never had any trouble with them, and I like their print quality. You'll also get free prints for signing up with them and discounts throughout the year. I only print/album my favorites.
Every couple months I zip my photo folders and move them across the network to my husband's hard drive. Then about once a year I burn the pics to cd's and I have a dedicated location for those. It may seem like a tad much, but I have had two learning experiences with various backup systems and have lost almost every one of the pictures from the first 5 years of dating my husband. Better safe than sorry!