I use DriveImage Pro which is very similar to Norton Ghost.
Usually what I do is install the operating system first, add all the drivers and then perform an image of the hard drive. Once I have that image, then I start installing my others applications. If one of the application causes the operating system to be unstable, I can always reload the image in less than 15 min.

When all of my applications are installed and running smoothly, I then perform another drive image and store it in a backup hard drive.

As far as data, I use cdrw and zip disk to store them.

Scott,
If you're interested in backing up Outlook files, you can always export your email and address book to a different location.
However, if you want to know where the files are located, first you have to go to Explorer/Tools/Folder Options. Select the View tab and choose "Show Hidden files and folders".

Then go to your profile folder. Usually it is located in Document and Settings/UserName (ie UserName = Scott)/Local Settings/Application Data/Identities.
This is where outlook stores its files.

Claude