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The System Restore makes backup files only of your system files when
you shutdown or manually create one.
Backing up your WindowsXP and other files can be done with a 3rd party
app such as Symantecs Ghost, but that is not free. Base is to copy and paste
all your personal files such as documents, photos, etc. to a CD.
WindowsXP Pro has a backup feature. It is also available for XP Home Ed.
The Backup utility is not included in the default installation of Windows XP
Home Edition. The Backup icon is not present on the Start menu in Windows XP
Home Edition, nor is Backup listed in Add Remove Programs for Windows XP Home
edition.
To manually install Backup:
Double-click the Ntbackup.msi file in the following location on the Windows
XP Home Edition CD-ROM to start a wizard that installs Backup: CD-ROM Drive
:\VALUEADD\MSFT\NTBACKUP. When the wizard is complete, click Finish.
System Backup for Windows XP
Windows Backup Does Not Back Up to CD-R, CD-RW, or DVD-R Devices
Tip: Save the backup to your CD Burning folder. Then select the CD-R
device and "burn" the file to CD. If you want to
restore the backup, copy it from the CD to your disk and then
restore it. If for some reason the restore utility
doesn't like the file, change the read-only attribute that it
picked up from being on the CD.
For more information:
http://www.kellys-korner-xp.com/win_xp_backup.htm