There is a special note for the "All information on this computer" option. If you select this and do a full back-up, then the program takes a complete image of your disk and, in case of any failure, you can restore it back to its original state. I suggest making this back-up to a CD/DVD or a thumb drive, depending on which drive your computer can boot from – if it can boot from a thumb drive, it is better to go with this option because the reading speed of thumb drives is higher than CD/DVDs, meaning that your recovery will be faster.
If this will be the first time that you are backing up your computer, first go with this option and keep your back-up safe. Then go back to the wizard and take an image of "My documents and settings". In case of a serious system failure, you can first restore your entire computer from the CD/DVD or thumb drive, and then restore again with your documents and settings. That means that you have recovered from a crash, restored everything, and will be running where you left off.
Finally, click Next and "Choose a place to save your backup" by clicking the "Browse" button. The default is your floppy disk drive, but a USB disk is a better option. Finally, rename your backup in the Backup_YYMMDD format, because this will help you easily figure out later which backup is the last one. Clicking Next starts the process. This is all it takes to make your data secure.
As I promised, I have a tip for Bright Hub readers. Go to Start-> (All) Programs -> Accessories -> System Tools -> Scheduled tasks and double click on "Add Scheduled Task". Click Next in the wizard, and in the opened window select Backup. Click next, select "Daily", click next and set the start time to a time that you are not using your computer but it is powered on. This can be lunch time or if you leave your computer running, it can be something like 05:00. Leave "Every Day" selected and set the start date to, preferably, today or tomorrow. Click Next, enter your password, tick the "Open advanced properties for this task when I click Finish" box, and Finish. Go through the wizard once again. When you have finished, you will be backing up your computer every day at the time that you specified in the wizard. In case of a failure, even with the worst case scenario, you will only lose, at most, one day's work.
Of course there are commercial tools available for users who take backing up very seriously (the prudent people). As I mentioned, Acronis True Image is a perfect tool for this job. You can read about it in Steve Mallard’s review and/or go to its homepage for more information.