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How to back up, best methods

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i'm computer literate to a degree but some stuff escapes me, so apologies if this is a bit thick

now i'm the ruler of my computer since i no longer live at home, i want to avoid problems i've had in the past by backing everything up.

how to go about this? i have stuff like nero which has an option to make back up discs. how would i for example back up xp and its service packs ( i do have the original disc though)

what would i need to do to, say, create a back up with all the most important stuff in case of a failure - is this a whats called a start up disc or restore disc or something?

am i best getting an external hard drive, or can i just make up load of dvds with the stuff i cant, for instance download from t'internet

any good links for basic giudes for this sort of thing would be good too

cheers ears

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