Well, Windows 7 includes a "system image backup" as one of it's advanced recovery modes.

Here's one link (of many) I found via google (I used "windows 7 system image backup" as my query).
http://www.howtogeek.com/howto/4241/how-to-create-a-system-image-in-windows-7/
It seems to be a step by step instruction.

You do need the following things:
1 CD-RW to create the boot-disk
1 external harddrive where you store your actual backup.

Michael

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