I am trying to set up Backup MyPC to automatically backup to an external hard drive. The application help says that you select 'file' from the 'where to backup' dialog and then browse to your intended destination, but I do not have that option. The only choice I have is my DVD writer - there is no 'file' option available.

Why would this be?

David

Are you doing a disaster recovery? If so there is no file option as you need 4 floppies and a CD/DVD burner for that. I use DR for just that purpose, in case I lose my hard drive. Then all it takes is the windows install disk, the floppies and the backup to get back to what I had.
If you are just creating a full backup job, you should be able to back up to a file. I use the full backup to file in between DRs.

Sorry - I obviously wasn't clear. I am trying to do 'Automatic Data Protection' and automate a regular differential backup...problem is that I cannot select my external hard drive because the option for a destination of 'file' is not there. I only have the option to use my DVD writer which is NOT what I want.

Sorry, I misunderstood what you were trying to do.
I just tried to set up auto protection myself, I normally do manual backups, and the option to backup to a file was not there. The only reason I can think of as to why it is not available is that it is backing up all hard drives, whether full or differential, and can't write to drives it would be backing up, a never ending loop.
Sorry I can't help you better.