The idea of have your site both on your computer and on your server is so that if you deleted your whole site on the server, you could reload everything from your computer ...
If you maintain this "clone" of your site on your computer you are always current and up to date ...
To back this up to CD is a good idea on a regular basis like anything else ...
In theory, unless you make a change on your computer that you load to your site on the server ... the files are always matched or synched ...
NOTE: most hosting sites are not backing up your site for you but rather your database ...
As to your database ... a regular backup of your database is also a good idea ...
Backing it up with the Backup MySQL in the Downloads ... Admin Tools ... at the top of your screen would be an excellant add-on ...
1 this generates a backup on your site by date/time
2 you can download the backup to your computer and maintain a copy
In theory, should something happen, your hosting site should have a backup for you in the event of damage to your database ... but, to be safe, you want to maintain your own backup regiem to protect your site ...
CDs are cheap ... get a stack of 100 of them and start making your backups ...

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