How should I store files (nef, dng, other)?

As a new user of CS5, I would like to know how most experts save images.  Right now, I load nef (Nikon raw)  images from the camera to my Windows PC using "get photos from camera" in Bridge.  I then edit some images using Camera Raw and (sometimes) using Photoshop with layers. I also add metadata of my own.   I would like to have one file for each image if possible.  I just do not like to have  a lot of different versions hanging around.  I am not concerned about backup because I backup the entire PC daily.  I do want to preserve all potentially useful data from the camera though.  When needed, I use Save to create jpegs for external use, e.g. for Shutterfly or (using different settings) for Web use.  I usually save these separate from the original nef files and their companion files.  When a file has been edited only by Camera Raw, I notice that it remains a nef file.  When it is edited by Photoshop, it gains a companion psd file, and when metadata is added it gains a companion xmp file.  I keep these nef files and their companion psd and xmp files toegether in the same folder sorted such that the three are adjacent.  Is this the best way to store these images? 
Incidentally, the Photoshop Essentials course from Lynda.com and the Adobe Help documentation do not cover the above companion files adequately in my view.  Can you comment on this point?
Jim Mullen
Tahoe City, CA

Since you asked how others do it, I'll describe what I do:
I save all my original files by Year \ Month \ Occasion on my computer on a 2 TB RAID 0 - based hard drive partition.  These include raw images, JPEG images, and scans (saved as .PSD files).  All are online (about half a terabyte of data total) so I can easily access what I need when I need it.
I back these files up to two different external USB MyBook drives in two different parts of my house, as well as to DVD (more recently blu-ray DVD for the added storage).  I do incremental backups that ever-accumulate, so I'm protected from accidental erasure, as well as full system image backups that can be used to completely restore each of my entire systems.
I never overwrite my original files, and I even go so far as avoiding using Camera Raw to open JPEGs because it will write metadata back into JPEG files.  And I never write any editing products back into my original photo folders.  This helps avoid accidents.  Photoshop CS5 now actually has a setting one can configure that will instruct it to remember a different default for Saves as for Opens.  I like that.
Usually, for most uses, I just reprocess my original file if I want a print, or to use a copy online, etc.
For complex Photoshop projects, I save PSD files in separate folders from my original photo files, named for the project.
Regarding making backups, I suggest this mantra:  "Don't invite disaster, but there's nothing wrong with preparing for it."
Hope this helps!
-Noel

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