@bobbystahr: The solution I've provided here, is more in regards to losing data in the event that you experience a hard drive failure.

Data loss due to theft is a different subject matter, to be able to recover from that scenario, I recommend using an online backup services like  www.mozy.com or www.carbonite.com they have very affordable solutions for the average consumer.

In the event that a theft occurs, you can recover your data over the internet.

Most thefts are the crash and grab type, they dont want to linger around for too long.

My NAS is on the network but its not easily accessible, if my house was broken into.