What is the best online backup for OS 10.5.8? And if I Reinstall OS will I have problems?

Question

My old Mac has had the flashing question mark file on a blue screen. I waited a couple days, turned it back on and it worked. However, in between that time I went and bought a new Macbook Air. I am relieved to have all of my pics and docs back. I need a good online backup. I downloaded BackBlaze Backup but it is taking forever and I am not sure if it's the best choice.
My plan is to backup all of my files and then wipe my computer clean with the install disks and give my computer to my little sister. So, my question is two fold; which is best online backup and will I have any issues wiping clean the computer and doing a reinstall? For example, will all the updates still be available? What is the best thing for me to do?
Thank you : )

Answer 1

Just understand it gets pretty expensive after you exceed the free space. 2-5 GBs isn't much space.
Basic Backup
For some people Time Machine will be more than adequate. Time Machine is part of OS X. There are two components:
1. A Time Machine preferences panel as part of System Preferences;
2. A Time Machine application located in the Applications folder. It is
     used to manage backups and to restore backups. Time Machine
     requires a backup drive that is at least twice the capacity of the
     drive being backed up.
3. Time Machine requires a backup drive that is at least double the
     capacity of the drive(s) it backs up.
Alternatively, get an external 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. Carbon Copy Cloner
  2. Get Backup
  3. Deja Vu
  4. SuperDuper!
  5. Synk Pro
  6. Tri-Backup
Visit The XLab FAQs and read the FAQ on backup and restore.  Also read How to Back Up and Restore Your Files. For help with using Time Machine visit Pondini's Time Machine FAQ for help with all things Time Machine.
Although you can buy a complete external 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 especially for Firewire drives (911, 921, 922, for example.)  You can find enclosures at places such as;
  1. Cool Drives
  2. OWC
  3. WiebeTech
  4. Firewire Direct
  5. California Drives
  6. 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.