System restore and backups

I've searched the forums but can't find how to get my system restore to work - I've got Win xp on a fairly new HP pc. When it was new and shiney I could use system restore to go back a few days if necessary, now I keep getting error message - incomplete, unable to system restore. I've followed all the advice on the MS website - the sytem restore is active, restore points are there, I'm using the administrator login but no joy.

Every morning the pc says it is backing up something and chugs away, but what is it doing? If I wanted to use a backup where would it be? I thought backups went onto disks you could remove? I still can't find out what steps to follow to do this although the screen came up automatically when the pc was new.

Sorry if this has been posted before, but I'm going cross eyed trying to find out what applies in my case.

Thanks.
Beckipeg :)

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