I realize the importance of backing up one’s files.  While Ghost is great for backing up the entire hard drive, it’s not practical for hourly backups.  In manually backing up. I’ve been burned by overwriting a current version of a file with an older version.  It's easy to loose track of which disk you're on as the folders are the same.  Using the copy command to copy large folders is time consuming.  I’d like to only copy files that have been changed.  I’m looking for a backup program that will store not only the latest version of a file, but the previous version.  Our PC has multiple plug-in hard drives.
Do you have any recommendations, preferably free?

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See this thread here:  Recovery Point Browers for File and Folder Backup???

Starting with reply #6, the posters mention xcopy, xxcopy, Second Copy 7, and Karen's replicator (free).

Google those to see what options they offer!

Here's Karen's Replicator

Looks like it has the function you want: 

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But not sure if that is saving multiple versions, or over-writing previous copies if there has been a change.

Few options for backing up files is any simpler or cheaper than what already comes with every MS OS.
It's an age old DOS program called "XCopy".

I use it daily, to keep "My Documents" and "My Files" and a few other select folders, backed up to my second hard drive.
I just wrote a simple batch routine incorporating the XCopy command and attached it to my 'Quick Shutdown' routine.  Of course, it could also be run by itself or even run from the "Task Scheduler" if desired.

With the proper switches at the end of the command line, XCopy will back up only files that have changed or do not exist in the backup folder (new files).

My backup batch file starts off like this, backing up everything under "My Documents".

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As needed or wanted, extra lines can be added to the batch file at any time with either Wordpad or Notepad and existing lines can be modified.

There's no need to add more software to your PC.

Well, that's my little solution to the files/folders backup problem, anyway.