I'm planning to participate in Fully Booked's Graphic/Fiction Contest and this is a peek at my writing process.
Right now, there's two forces tugging at me. One part wants to go back and revise what I had written. The other wants to go and continue writing the story, errors-be-damned, and perhaps what's different from before is that I currently have a clear idea where to take the story. So what do I do? Actually, each writer has their own writing style so everyone will answer that question differently. For me, it's a strange experience but never have been two motivations seem equally matched. And in favor of the latter option, I know I'll be editing the short story anyway once the story has been finished so editing it again might simply be a redundant effort.
Also, I should be in the habit of making back-up copies of my files. You never know when the computer untimely crashes or someone unwittingly infects your hard drive with a virus/worm/spyware. Personally I keep all my writing files in a flash drive so I can take it anywhere and theoretically do my writing from any place. Having said that, I'm also wary of inserting my flash drive into just any computer for fear that the computer might actually be infected with a virus and thus corrupt my documents and later my own computer (well, that was better said than my penis analogy for flash drives). CD backups I've given up on, at least when it comes to documents, because I can't modify them. My last alternative is Google Docs but the local ISP providers being what they are, you're not always guaranteed to have an Internet connection.