I basically do what Paula does.
Every new kit I have goes to the NEW folder and then gets burned to DVD once it reaches 4GB. I back up to DVD twice labelled A-Z. Each label has its own list which types of kits are in that DVD. (I have a masterlist as well). (What I forgot to do is to have a masterlist of designer and their kits and to which DVD it was backed up to!).
I did this system when I read
KSharonK's Back Up procedure in her blog.
I plan to get an EHD for main back up as well. But as of the moment, this works out perfectly for me.