Database Backup

I've been doing some research on the various methods available for backing up a PostgreSQL database. I'm running a small network in my home with a few servers (Window workstation, Apache/PHP server, Firewall, and PostgreSQL)... I'm concerned about backup of course. A lot of work is going into this project and the most important thing on my list is recovery.

PG_DUMP (from what I've read) seems to have the features I need but I was hoping that someone might be able to share the pros/cons of using this utility. I don't need anything elaborate - I just need to be able to restore my DB easily. I read that there is a problem when restoring DBs that use sequences to auto-generate row ID values (which I use in every table I create) - is this true? What is the workaround?

Thanks in advance to anyone who might be able to help me out.

~Carlos