Digital media is fragile.

All I can say on this subject is you can't be paranoid enough with your data - especially your photos.

If you DO decide to digitize, you MUST - must must must must - have a DAILY backup plan that you don't ever fail to do.

You need AT LEAST 3 separate physical devices to back up your data and you need to make sure one is NEVER left in your home.

Use an online backup service as a 4th place to keep your files. I use Google Picassa a lot.

Scanning is a pain in the butt, takes a long time. It's worth it.

We've been 100% digital since the late 1990's and we've experienced every single form of data problem you can - you need a constant backup program.