One more vote for Macrium. I use (not so often actually) it, and it does a really great job. The only thing which annoys me about it is that in Windows Backup, you can explore the backup, and recover just the piece you need.
Though, Macrium is way better because it doesn't ZIP every folder one at a time. Windows does. It basicly makes a single file.
I also agree with the rescue DVD. I didn't make one, and nearly paid for my mistake. I have one now

Another thing to do is to make a restore point once ina while. You'll be able to restore your system to an earlier time if anything goes bad. Though, Windows makes them automaticly.