I know that rackspace isn't responsible for data loss caused by hardware failure or an accident on their part. A number of rackspace employees have told me (on irc) that I'm responsible for my own backups. Perhaps it was a misquote?

"We're sorry for the issues you've had with your server today, but we're not responsible for looking after your hardware."

A drive failed in a RAID1 array so I contacted their support to get broken the drive replaced, they removed the working drive and destoryed it then insisted it wasn't their fault, I even gave them the serial number of the failed drive before they removed it. I do have my own offsite backups of everything, but it was still annoying to have to restore the entire server