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I think zip drives come with smaller disks. plus a zip disk is like a floppy, stick it in the drive and write/read. Havent seen them above 250MB per disk.
Got a USB one from maplin for £150 for 320GB (actually 300GB) but its quick! Only took an hour to back up 45GB, which only needs to be done once then incremental backups.
I am using Norton Ghost 9.0, never used it before but is really easy to use.