Auto Data Recovery is a new QuickBooks feature. It is available in the Pro and Premier versions of QuickBooks 2011 R6 and QuickBooks 2010 R12 (U.S. editions).
Auto Data Recovery is essentially automatic backup. It does not replace making a security backup daily (or at least weekly). The whole idea of the feature is to automatically protect your data. There are pro and con to the feature.
Charlie Russell, founder of CCRSoftware, and a Certified Advanced QuickBooks ProAdvisor, steps through the Auto Data Recovery feature in a post on the QuickBooks and Beyond blog. QuickBooks automatically creates an ADR file (backup copy of your database) and a TLG file (transactions since the last database backup). If you lose your main database, you can recover.
BQE encourages every BillQuick customers who uses QuickBooks to read this post.