Backup - Your Data only or a full disk "Image"
Why would you do an Image backup compared to a Data backup? It's has to do with the time to recovery. Anyone who has purchased a new computer is probably familiar with the time it takes to install application software such as Microsoft Office, financial software such as Quicken, and other applications. In addition, if you have owned your PC over time you have probably personalized it with bookmarks on your web browser, set it to remember passwords, and set up the desktop and files so it fits the way you work.
Now, imagine all that's left is your data. While it's a start, the time it could take to reinstall your operating system, applications, email, and settings could be from one or two hours to a full day. With an Image backup, you have a complete copy of your entire hard drive, not just your data. You don't have to go hunting for software license keys, copies of CD's for your operating system, or other information that could take a long time and potentially cost you money and time to locate and install.
To make an Image copy all you need is an external hard drive that is big enough to store all the information on your hard drive, and a copy of an Image backup software like Acronis or an upgrade from Windows 7 Home Edition to Microsoft Professional Edition.