There are a couple of FREE options depending on what operating system you are running.
On a Mac (Leopard) - All you need to do is connect the external drive and it will ask if you want to use it as a backup device. This will enable it to constantly update your files as you change them.
On a PC (Windows) - There is a neat utility called "Backup" (very original name) that has been around for a while. You can find it by clicking Start -> Programs -> Accessories -> System Tools -> Backup. You can use the Wizard to make a quick and easy backup of your files or you can use "Advanced Mode" to get in depth. One neat thing that you can do with this is have a scheduled backup. So you can set it to do an incremental backup (only backup anything that changed after your previous full backup) every midnight.
Hope that helps!
