XPS T500, 21 Gb HD, 640 RAM, Win 98 [not SE or ME]

I'm planning an upgrade to XP Home. In reviewing the seemingly endless wild goose chase on the MS site, I came across what I thought was exactly what I need: How to back up everything. I've already backed up all my own documents, OE .dbx [message] and .wab [address book] files, but have no idea how to back up such things as my IE6 favorites, as well as any system files that I may need after the upgrade.

MS's instructions  at document 316639 ['How to prepare to upgrade Windows 98 to XP'] indicate that there is a backup function accessible at Start/Program/Accessories/System Tools/Backup.  There is no listing on my version of Win98 for "Backup."

1. Is it located anywhere else?

2. Also, is there any significance to the extension they use, i.e., "qic"?