Yesterday at about 1000 GMT my PC crashed. It started to make a clicking sound from somewhere inside. When I rebooted it was a black screen saying "unable to find operating system".
Yep... drives fail. And most people don't know about this fact until it is too late... (I don't like to trust my data to a merry-go-round

)
I know a guy who lost 5 years of baby pictures on his Laptop. Lets just say he was crying more than a newborn!
The clicking sound is most often due to a drive head that failed and is either banging on the casing or (the worse case) scratching the disk's surface. I'm surprised the computer's SMART feature didn't give you a warning of the impending failure.
Now, for being the computer geek that I am, I have a few sources that will help you in some way. Help spread the knowledge as I'm getting tired having to say the same things over and over...
A noisy crashed drive is not necessarily lost forever. There is a company called
DriveSavers who specialize in restoring data from very damaged drives (even ones that have been through fire). They move the platters that contain data to a new casing and copy the contents to a brand new drive. The service is expensive but for priceless pictures, it's worth every penny.
Option No. 2 is to get a computer with
RAID ports on the board (or a RAID mobile rack adapter). In this case, there are 2 identical drives with the same data on both. If one fails, the other one keeps on working. It's what they use on big servers.
But that won't protect you in case of Operating System Failure, something which can be even more scary. You know the drive turns, it's just that Windows refuses to start. This has happened to me and the tech support guys all told me to reformat, something I really didn't want to do! After spending 3 nights up, a friend discovered the
Ultimate Boot CD for Win. It's a free download and you need a working system to build the disk. But once this is done, all you have to do is boot from the built CD to access a mini version of Windows XP which is equipped with a ton and a half of tools to get you out of the worse situations! A highly recommended download. It got me out of a rut and can help anyone.
Last but not least, as you said, DO YOUR BACKUPS!
After the near crash incident, I decided to fix things for good. I bought an external USB Hard Disk. There are 2 possible things to do: copy your documents to the new drive or mirror the whole disk. I like to use mirroring software as it makes recovery much easier. I do a full disk image once a month (after I put in the month's Microsoft patches) using Acronis TrueImage. Expensive but worth every penny. Norton Ghost is also a good solution. There are also cheaper alternatives (even freeware on the Ultimate boot CD) that will clone disks. That can also be worth looking into since it is the easiest and safest thing to do. Once the image is done, I shut down the external device so it doesn't wear out.
Don't put all your hopes only on CD's and DVD's... they don't last for long. I've had CD's that I burned a few years ago which are starting to get hard to read... And I've had a DVD stay readable for only 2 weeks! scary.
As they said in an article on "digital image preservation", to put the most chances on your side, do the following:
- Copy the images to an external hard disk
- Once the disk is full, copy everything to DVD's twice, from 2 spindles of two different manufacturers.
- Store the DVD's in a bank vault protected against fire.
- Store the hard disk in a fire safe.
- When you get a new computer, re-copy everything to more recent media. Formats change, make sure you will still be able to read your images in the future.
And that's why I stuck to film. Easy do shoot, easy to store, lasts forever, no updates are ever required. I hope that this lengthy reply will help people... I hate seeing people compute irresponsibly. If ignorance is bliss, knowledge is power.