best backup strategy for XP w/ T61?

[esmail]

Hi,

What's the best backup strategy for my T61 running XP? I have a 100MB
drive, and access to a 160MB external drive (which I am also using
store some other data). Plus the writable DVD drive.

I hear there is a great backup program bundled with Vista, but not
with XP. And I have read not such great reviews of the Thinkvantage
backup and recovery program.

Can anyone recommend a good/reliable free (or cheap'ish) program that I
can use to back up my system? How do you handle this task?

Thanks,
Esmail