Cost effective backup/reformat strategy

I've been having some crashes/freezes so I ran Disk Utility verify which failed. Booted to install disk, ran Repair Disk which returned:
Reserved fields in the catalog have incorrect data.
Invalid key length.
Volume check failed.
Error: the underlying task reported failure on exit (-9972).
Repair attempted on 1 volume
0 HFS volumes repaired
1 volume could not be repaired.
After browsing the forum I concluded that the HD needed a reformat (erase and restore) or perhaps Disk Warrior treatment. It seemed logical to back up the data files so I archived them from finder and attempted to burn them to DVD+R (which has been working fine until now).
This failed repeatedly returning error code 0x8002006E.
So here's the dilemma as I see it: buy Disk Warrior ($100) and hope it works; buy a 2nd hard drive ($100), transfer the data files to that and erase/install the 1st drive; or...?
Comments or suggestions appreciated. Drive recommendations?
Thank you,
Geoff.

Limnos has some good suggestions for you. Once you straighten out your extant situation, here's some suggestions for backups:
Basic Backup
Get an external Firewire drive at least equal in size to the internal hard drive and make (and maintain) a bootable clone/backup. You can make a bootable clone using the Restore option of Disk Utility. You can also make and maintain clones with good backup software. My personal recommendations are (order is not significant):
1. Retrospect Desktop (Commercial - not yet universal binary)
2. Synchronize! Pro X (Commercial)
3. Synk (Backup, Standard, or Pro)
4. Deja Vu (Shareware)
5. Carbon Copy Cloner (Donationware)
6. SuperDuper! (Commercial)
7. Intego Personal Backup (Commercial)
8. Data Backup (Commercial)
10. MimMac (Shareware)
The following utilities can also be used for backup, but cannot create bootable clones:
1. Backup (requires a .Mac account with Apple both to get the software and to use it.)
2. Toast
3. Impression
4. arRSync
Apple's Backup is a full backup tool capable of also backing up across multiple media such as CD/DVD. However, it cannot create bootable backups. It is primarily an "archiving" utility as are the other two.
Impression and Toast are disk image based backups, only. Particularly useful if you need to backup to CD/DVD across multiple media.
Visit The XLab FAQs and read the FAQs on maintenance, optimization, virus protection, and backup and restore. Also read How to Back Up and Restore Your Files.
Although you can buy a complete FireWire drive system, you can also put one together if you are so inclined. It's relatively easy and only requires a Phillips head screwdriver (typically.) You can purchase hard drives separately. This gives you an opportunity to shop for the best prices on a hard drive of your choice. Reliable brands include Seagate, Hitachi, Western Digital, Toshiba, and Fujitsu. You can find reviews and benchmarks on many drives at Storage Review.
Enclosures for FireWire and USB are readily available. You can find only FireWire enclosures, only USB enclosures, and enclosures that feature multiple ports. I would stress getting enclosures that use the Oxford chipsets (911, 921, 922, for example.) You can find enclosures at places such as;
Cool Drives
OWC
WiebeTech
Firewire Direct
California Drives
NewEgg
All you need do is remove a case cover, mount the hard drive in the enclosure and connect the cables, then re-attach the case cover. Usually the only tool required is a small or medium Phillips screwdriver.

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