Craig,
First off, understand that if you choose to backup your work on VCD or (shudder) CD, you'll almost surely put your footage through pretty heavy compression in order to fit your content on the small storage of those kind of discs.
Backing up your raw footage to DV tape is a MUCH better option if you want to keep your quality up.
Remember, even raw DV (or DVCAM) tape uses almost 5:1 compression. Re-compressing a video signal (like when you go from tape to VCD) always involves a pretty substantial quality hit - so be careful!
Finally, remember that most of the actual editing choices you make and may wish to preserve on your timeline are just pointers to the original clips digitized to your hard drive. Even if you erase those clips, getting them back is typically no more difficult than "re-batch capturing" the clips from the original tapes.
For me, backup means copying the small "project file" that holds all the editing info, making copies of graphics or audio that I can't easily re-capture. Then just putting my original field tapes in a safe place. With those elements, re-capturing the clips and re-rendering the files puts the timeline right back where I was before I threw assets away to regain drive space.
Finally, if you do decide to make "clones" of your original field tapes, take care to keep the timecode on the clone as consistant as possible with the original tape. Nothing worse than re-batch capturing from a clone, only to find that the timecode has shifted and all your scenes are missing the first few seconds!
Good luck!