Financial Channel

I am curious about best savings tactics right now both short and long.

If Short term - house/car in 5 years whats the best way? Basically have small lump sum now and a bit each month.

GIC's, High interst Bank account, Stocks, Mutuals, Treasure Chest?
I was considering putting in 5 year GIC, then saving for year in ING then putting that in 4 year, then saving for a year and putting it into 3 year etc.. so all comes due in 5 years? The other option is to ladder so that every year I have some come out for either spending or re-investing.

As far as Long term - retirement - 25-30 years - whats the best way to diversify? Monthly contribution only.

Don't want to risk it, but some risk is good for the gain. What kind of % to put in Low, Med, Higher risk?
Strip bonds? Long-term Gic's, or Blue chip stocks for low
Maybe just invest in some the stock market for medium - it generally moves up over time
maybe some markets stuff for high - maybe some homeland security type stuff
Or is it best just to go to a Mutual company and let them do all the worry?

Anyway I would love suggestions.