cpailma (12/30/2008)
How often should I back it up? What are the implications to my system? Will the user experience any slowness or timeouts while it the log backup is running?
The closer the transaction log backups the least data you have to backup. Now too frequent may not be convenient nor rational. Transaction log backups are "online" (non-blocking) operations so you should not expect a significant impact.
There are companies that take one every 15 min, others every 30 min , others hourly ... and so on given a recovery plan (how much data are you willing to loose) you should select what you feel comfortable with. Because you said "once a day" I would recommend you start "hourly".
-Noel