If you want to backup everything including your operating system, settings, applications and data you need to create a mirror image backup of your hard drive - basically a snapshot that is a compressed set of files - you can backup to an external drive or dvd with macrium reflect free
http://www.macrium.com/reflectfree.asp
you can find tutorials on youtube
http://www.youtube.com/results?search_query=macrium+reflect&search_type=&aq=f
alternative: paragon drive backup express
http://www.paragon-software.com/home/db-express/
If you want software to backup a set of folders and files, have a look at GFI Backup Home Edition - you can specify what you want to backup, where and when
http://www.snapfiles.com/reviews/gfi-backup-home-edition/gfibackup.html
alternative: Ascomp backup maker -standard edition is free
http://www.ascomp.de/index.php?php=prog&prog=backupmaker