Oh! You know what?

What about Virtual Hard Drives??

You start things off as a VHD.

You back the entire VHD file up using standard File backup.

To Restore you just stick any USB drive with the VHD on it and run that VHD.
WHAMMO BLAMMO!
Instant 'new' and restored machine.

So an application could churn out Dated VHD files which would
constitute full system backups of any point in time!

And then from any machine you just fire up the free Windows Virtual PC
2007 and run the VHD.

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