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Since XP Home doesn't have Disaster Recovery, backing up the system installation makes little to no sense.
Stupid as it is, many many applications keep user configuration and even user data in their program directories - so unlike on Linux, where backing up /home/ gets all the user data, you'll end up having to collect your stuff from many places.
For those doing real backups with tape drives and the likes, the XP Home installation CD has the NTBACKUP.EXE application well hidden somewhere.
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