I've got 300CDs stored on a machine that also acts as a Small Business Server 2003 on a SOHO basis which has a 300Gb tape drive. While I back up the mainstream files - user documents and email etc. every day, I only back up the music files from time to time.

I rip using EAC combined with MAREO which allows me to store FLAC (losless) files for use with the Squeezebox, and MP3 (10x VBR) for use in an iPod in the car. It takes a bit of setting up, but once done ripping new CDs is totally automatic.

Tim