I guess the problem is that I don't want to spend several hours installing all the software again (getting software activation codes ect. takes ages). I'm currently finishing writing my PhD Thesis, and as I'm paranoid I have 3 different backup scripts like this:
if not Exist "\\**network location**" exit
xcopy "d:\My Documents\*.*" "\\**network location**\My Documents\*.*" /V /D /Y /S /K /H
This way I can make relative quick incremental backups which store a backup of my thesis (Including ~3GB of raw data) on 3 different PC's at 3 different locations

- I will be relatively safe even in case of a major fire

For a comparison of NTFS and FAT32 look at
www.ntfs.com - I would choose NTFS over FAT32 any day. The only reason why Acer did not sell the laptop with NTFS formatted hard drive is that some older software is not compatible with NTFS. And since you can easily convert FAT32->NTFS but not vice versa I think Acer did the right thing.
Real men don't use backups - real men cry a lot!