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Interesting question. I consider S3 with a front-end like http://www.jungledisk.com/

Does anybody have any experience with that?

Jungledisk is great. Its easy to use, cheap and runs on Windows, Linux (includes GUI and CLI) and Mac. You can treat is as a network drive or setup automated backups. The protocol is open so you can use tools like S3 Firefox Organizer to retrieve your data outside of the Jungledisk front-end.

Another big plus is that you can run an unlimited number of instances across any number of machines after paying a one time fee of $25.

I'll also chime in for Jungledisk. I use it on 2 machines at home and a few at work (Windows Vista, Server 2003). The cost and security is really nice.

Jungledisk Plus gives you the option to view files online - so it's a backup + online viewing option (since it uses Amazon S3 and is already online).

That looks really neat. I had wondered about using S3 for backups. I'll definitely have to try it out.

It looks like the "Plus" service's block-level access and transfer resume would pay for itself pretty quickly with a reasonable volume of data ($1/month vs 0.10 or 0.18 per GB up/down), besides being worth it for $1 anyway.

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