5 Options for Backing Up My Home PC

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I'm recovering from losing both the power-supply and hard disk of my home PC after we just moved house. I'll cut a long story short by saying that there was a loud bang and smoke coming out of my Shuttle XPC after I unpacked it from moving. 

After a couple of relatively expensive trips to Fry's, the machine is now operational and this recent event has me thinking about taking backups a little more seriously. One of the problems I have (which I'm sure many people share) is the sheer quantity of data held on the PC. If I add up all of the photos, videos, music and other stuff on the machine it's reaching near 60Gb - and this grows exponentially on a monthly basis. My question is - what is the best backup strategy for this? Here are the options I've been toying around with:

1. Backup to DVD - cheap, but 60Gb / 4.7Gb = 12.7 DVDs to backup all the data. I guess I could re-organize the libraries so I'm only backing up the incremental changes, but then this makes restoring difficult.

2. Backup to Dual Layer DVD - see option #1, buy new DVD recorder and divide number of DVDs required by half. Better, but still lots of media...

3. Buy additional 300Gb Hard Disk and setup a RAID 0 mirror. Cheap and easy to maintain, but won't survive the PC being stolen, flooded, burned in a fire etc.

4. Use Foldershare to distribute libraries across multiple PCs. This has the main advantage of not requiring any regular backups, but if any of the files get corrupted this can start spreading across machines without me noticing (until I have to show that all important slideshow one day to my family :).

5. Go out any buy some tape backup hardware and a ton of tapes. Most reliable form of backup, but expensive. I read a blog article about using my viedocamera and 4mm digital tapes to "reverse backup" through the firewire port, but this sounds like it could be slow (and each tape has only a 20Gb capacity).

My gut is to implement #3 and #4, make another trip to Fry's and purchase #2 and record to DL DVD every month or so. 

Any other options I could consider?