I used to use an Archos 20gb hard drive as a back-up, but I found Archos products extremely unreliable and after the retailer replaced the product 3 times and having problems with all 3 units they eventually gave me a full refund.
I now use 2 cd/mp3 players for back-up.
One is connected to a spare channel on my mixer and is constantly running during my show so if anything were to happen I would be able to instantly switch over to that channel. The other cd/mp3 player is with me so that if ever there was a real problem, I would be able to connect that to the mixer as well, and still be able to operate virtually normally, i.e. no gaps between tracks, and choosing from a large selection.
Further; I have burned 3 CD-RW's with about 600 tracks on them, including the most popular songs for the dancefloor from different music genres on the 3 CD's.
As yet the back-up plan has never been called upon, and I'll be quite content to leave it that way
Regarding Windows; I would estimate that in more than 95% of cases where there are problems with windows, it is usually driver conflicts caused by drivers from different software. Anyone intending to use a pc/laptop for dj use would be insane to install any other software on the pc/laptop other than the dj software needed to play the music. If you have only one item of software on your pc you are FAR less likely to have driver conflicts and any problems with windows in general.
As for the advantages of using a pc/laptop:
You're able to bring thousands of tracks to every gig; note, not thousands of albums but thousands of tracks. We all know that almost any album you buy will always have many tracks on it which you will never use. Using a pc allows you to be choosy as to which tracks you include on the pc.
You have far less weight to carry about.
Mp3's do not skip or jump like vinyl & cd's do and so you receive exactly the same music quality EVERY time you play the mp3, it will not deteriorate over time like both cd's and vinyl will.
You're able to find a track within a couple of seconds. You can search by the name of the artist, the name of the track or even search by using just 1 word from the artist or song title.
If you're mixing you can put all your songs in order of bpm, so if you're in a mixing set and your mind goes blank as to what track to play next, by viewing all your tracks in bpm order this will allow you to find a suitable track that will mis into what you're playing.
You can also sort the tracks to just show music from a certain genre, or era etc.
You're able to play the same mp3 file two or 3 times at the same time, meaning you can do some extremely creative mixing, or if for example you were playing a track and couldn't remember how the song ended, whether it faded, ended on a cut etc, you're able to listen to the end of that track while the track is playing.
You can create a playlist containing 5, 50, 500 tracks (however many you want). This is ideal for the start of functions such as weddings, xmas parties where you need to play background music during a meal.
Rather than leaving a cd playing which will nearly always contain unsuitable tracks for the function in question, by creating your own playlist you can ensure that the playlist is perfect for the function.
One negative which should always be taken into account is that you do need a reasonable knowledge about pc's in case something should go wrong so that you're able to quickly troubleshoot the potential problem.