Here is my little speech on backing up:
I'd recommend getting an external USB 2.0 drive enclosure, with fan (I like to keep drives cool) and a drive as large as or larger than your current drive, either PATA/IDE or SATA, which ever the enclosure supports, or one of the newer
backup drives . Alternatively, you could add a 2nd hard drive internally to your computer (PATA/IDE or SATA, depends on what your system supports) and use it to backup to in place of, or in addition to the external drive. I use both a 2nd (3rd actually) internal hard drive and an external hard drive and Online Backup via
Carbonite.
Then you can buy
Acronis True Image (my preference) or
Norton Ghost or go the free route and use
DriveImage XML or
Macrium Reflect Free Edition (I use this on my systems at work).
If you go the DIXML route (I use this on my Web Server) then you will want to also get and build
Ultimate Boot CD For Windows (UBCD4WIN). It is a bootable CD that you create on your computer using your own copy of Windows XP. One of it's included tools is DIXML so in the event of a hard drive failure you just replace the drive, boot the UBCD4WIN CD and restore from your external USB drive.
Macrium Reflect has an option to create a System Rescue disk that you can boot to restore a Macrium backup with. Necessary in case you can't boot the hard drive.
Rule #1: Keep the backup current.
I use Acronis and keep 4 sets of backups, each holding 1 weeks data which is one full backup and 6 incremental backups on my internal drive. I backup up my data only continuously via Carbonite and my C:, D: , E: and F: drives to my other internal drive at 10:30PM. When the backup completes it shuts down the system after a 60 second warning. Full backup takes a little over 30 minutes, incrementals take 3-4 minutes.
Evey month or two or whenever I make significant changes to my system, I do a full backup to my external USB 2.0 500Gb hard drive. I also use this same drive to backup my Laptop and my Web Server.
I have never lost a single byte of data in all the years I've been using computers.