You'll get a variety of different opinions on what software to use for backups but most people will insist that you make backups regardless of what you use to do so.
Personally, I use Macrium Reflect (FREE). It's a great program that allows you to create compressed or uncompressed backups. You can revert to them by creating a pre installation disc to boot from. You have a choice of using BartPE or Linux. I use Linux.
Regardless of whether you use the Windows features (I don't recommend it), Macrium Reflect, Norton Ghost or one of the other alternatives you should also use system restore and create recovery discs.
System Repair Disc - Create System Restore