As space is so cheap these days, I 'backup' my entire workspace locally using rsync (use 'man rsync' for more details). Its worth checking out - even if you have the backup file system mounted locally, rsync's options give you great control over synchronising the backup directory and its really fast compared to tar or cp based solutions. This has the added benefit that you can mount your backup on another system and carry on working then use rsync to put the work back on your main system later.
My serious project work is further protected by the use of online repositories (subversion) which have the benefit of version tracking and deployment capabilities (I favour launchpad for open source and springloops for commercial work).
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