Add multiple HDs and you can also rotate backups offsite.
We find that for a multi-server backup solution, that a Firewire external HD provides better throughput than USB.
I use the native NTBackup, SQL Server backup, and a German product called Drive Snapshot. I take a new Snapshot after patching each server, so the server image is around a month old.
Coupled with BartPE w/ XPE and you have a great disaster recovery solution.
Andy