There are a lot of ways. This should be a good read for you:

http://en.wikipedia.org/wiki/Backup

Windows XP Backup Made Easy (MS site)

List of backup software (wiki)

The best imaging program out there is "acronis true image workstation", wiht universal restore plugins.

http://www.acronis.com


I done a lots of images of my OS from my PE2950.

cheers,
fredsky