It's good but you can't use it to backup your data.
This is a guide on how to use the windows XP backup utility:
http://www.microsoft.com/windowsxp/u...re/backup.mspx
It would probably be best for you to backup to a foldr on your C drive and then burn THAt image/backup to DVD afterwards. Unless of course you want to buy a piece of software that will manage this process completely for you. See this list
http://www.argentuma.com/backup/software/ - you could also Froogle or Google for alternative software.
I am sure that others will add their recommendations too....