To backup, you should use imaging software such as Acronis True Image or Norton Ghost. A True Image license is 50 bucks(I don't know the price of Norton Ghost; I don't use it) and worth every penny in the event of a hard drive failure. It makes a complete image of your hard drive such that when a failure occurs, you simply replace the old drive with a new one, run the True Image boot cd-rom, and apply your backup image to the new hard drive - Good as new in less than an hour. Contrast that with hours upon hours of reinstalling software and maybe not saving your data before the hard drive goes completely. Put the images on an external hard drive and you'll be able to examine the images with another computer that has True Image installed.
If your data means anything to you, you'll find a way to backup. If your time means anything to you, you'll image your hard drive while doing your backup.
Cheers,
Cristobal - Consultant