Hello,
The backup is a precaution to avoid losing important data.
What you need to do is find all of the files that are very important to you
that cannot be replaced, and transfer them to CD-R or CD-RW.
Things like pictures you don't want to lose, financial information, and any
other files that you really do not want to possibly lose.
Do not be overly worried; I just installed SP2 on my system without losing a
single file.