Here's what happened... my internal hard drive died... and to make matters worse... my external backup hard drive crashed & burned AT THE SAME TIME!
On the good side...
1. My Macbook (purchased 10/06) is still covered under warranty with Apple Care until September. So I got a brand new internal hard drive... and my case was beginning to crack and that was also replaced... cost to me ZERO!
2. I have MobileME! All my business contacts, calendars, previous emails, even my recipes were backed up to my idisk somewhere on Apple's computers!
I will do a much better job utilizing my idisk to back stuff up!
I found a good blog entry about getting the most from your idisk here.