Hard Drive Imaging Software

I recently had a problem, and had to reformat my hard drive, reinstall Windows, and 10 zillion updates.  Everything is running fine now.  Dell 8300 machine, 120 G drive. 

What I would like to do is purchase an additional 120 G drive (or smaller?), add it, and then have some imaging software back up my entire hard drive, OS & all patches, MS Office Pro, everything.....basically, if my original drive crashes or something becomes corrupted, I want to restore everything to a safe configuration.

I tried using System Restore to fix the problem I recently had, but it didn't correct it, so that is why I am looking at imaging software.

I have heard that Norton Ghost both A) works with Windows XP, and B) does not work well with NTSF formatted hard drives.

Am open to using anything, just want some good software.

What would be great is if I could both copy all my system files and program files (essentially making this extra drive bootable), and also being able to update weekly some of my data files.  That may require an extra partition or something.

Appreciate any help and direction.