I ended up going with this;

HP® Official Store — Buy the HP SimpleSave 1TB Desktop Hard Drive direct from HP

Probably a little overkill, but with three computers with itunes, photos, etc. I figured more can't hurt. This thing is simple as pie. Just plug it into the wall and then into the USB port and it automatically copies everything. Dummied down...just like I like my computer equipment. I may look into getting some additional online storage down the road for photos and other financial items that I would not want to lose due to theft/fire.

Thanks for your thoughts.

Also, I didn't have any issues updating to Windows 7 although they warn you it is possible to lose info in the process.

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Profeshenal spellar