Editing your photos, Storing your photos

I am finding more and more folks who are wanting to share their photos, store their photos, and edit their photos and are lacking good basic software to do so.
If you store your photos on your hard drive it can crash as mine did the other day.  Fortunately I had my 33,000 pictures backed up in multiple places.  I use Mozy as well as two external hard drives.  I was disappointed with Mozy for  a couple of reasons.  First they had a list of files I could up load by name, I had to request a down loadable copy which took about 2 days.  Then it was a long list of files with no specific name a down load number each took hours to down load then more time to unzip,  very arduous.  Second they wanted amost 100 dollars to put my files on a DVD and send it to me.  
Originally I tried backing up my files to CD's or DVD's , this works well but even the best Cd's and DVD's stop working over time.  The basic CD life is about 5 years the high quality can be longer.  Archival can be even longer and can be expensive.  And they are on site, so if  you have a fire or lose them you are burned.
In the mean time, I am finding more and more folks that are wanting to do more with their photos, and Light Room or Adobe CS5 is out of their budget.  Simply put they are looking for basic help with storing, editing and maintaining their pictures.  
I have a possible Solution.  First let me be clear this is for the average person not a photographer.  For the professional the answers will be different.
Mozy is nice but not my favorite,  I will use them until my contract is up and move on.  I understand, but have not checked out Carbonite, they have a new live on line view of your files this may bee cool.   I have found that Google offers some good help here.  In two areas under the same name.

Picasa,  photo editing software, can be down loaded into your computer for free, it gives you almost any editing you might want to do to your family pictures,  for free.  Google has provided up dates and it is respectable.

Picasa Web albums.  Google offers 1 gb free space to place your pictures on the web, actually in the Google Cloud, you can buy 20 additional gb for 5 dollars per year, this will hold a lot of pictures.  You can keep your pictures private, or you can make them public or you can share them with only those you want to share them, by invitation.  A really reasonable service and great way to share pictures.

One trick.  When you up load your pictures for Picassa, it will default to a smaller sized picture for the up load.  This can limit the size you can print or enlarge the  picture.  When you check to upload choose keep original size and it will do so.  I have some rather large pictures uploaded to Picasa.

I am sure there are others.  I know HP has a site, as does many other groups.  I personally trust Google to do a good job.  Check it out.