Start > Programs > Accessories > System Tools > Backup. Little known but powerful backup utility for Windows.

Create a list of files to be backed-up in the LH pane, and then save those file selections under the 'Job' menu. For the initial backup, do a type = Normal. For subsequent backups, do type = Incremental, and append the incremental save set to the initial backup media. You will then have one backup file containing an initial save set, and incremental save sets for all changed files. Develop a system so that once a month you create a new Normal backup file, and append incrementals to that file. Keep 13 months worth of those files, and you'll mimic how it's done in large data centers.

Try restoring a file once or twice just to see how it works.