not commenting on the recovery aspectm but hopefully that will turn out well for you.
For the backing up part there is a free utility form microsoft called "synctoy" you can find at microsoft here
http://www.microsoft.com/windowsxp/u...o/synctoy.mspx
You can set directories on your pute and your removable hard drive to compare, and any file thats different according to your criteria (new date, not in the directory, bigger size, etc) are copied, moved, deleted, etc. Its about the easiest free backup utility around.
I dont really bother with DVD backups, I just think they are a hassle small and slow. I keep one copy on my computer hard drive, one on the external. Once every couple months I have another hard drive I keep at work home and make a backup there as well. I do this with all my mp3s and photos and documents. One click of synctoy is all it takes. This way if a drive fails at home, I can copy the folders over form either the portable or the main. And should my house burn down, I have a fairly recent copy at work. 200gb drives are cheap.