I tend to be very paranoid about optical media, so I don’t like to trust my data to be just in one place. John does make a good point about keeping your stuff cleaned up on a regular basis. It is a lot more difficult to force yourself to edit photos from 2 years ago than it is to choose the 5% “keepers” from the past weekend. Finding a good way to organize all of your data can be pretty difficult–particularly with things like photos, videos and audio. I’m having good luck with iPhoto for my pictures, but if I wasn’t using a Mac I’d probably look at Picasa again.
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