Conclusion
At the end of the day it really comes down to whether you can lose any data or not. If you can't then you have to decide how much is it all worth to you and don't forget to factor in the cost of restoring all the lost data which can be quite considerable. If the answer is a lot then spend up on doing proper backups - it will pay you dividends in the long run.
If you have any computing questions in general I can be contacted by email on at nfarrier@southwest.com.au. I am more than happy to try to solve most problems (with Wintel machines) or give advice.
Dr Nigel Farrier
Golden Bay
West Australia