"or is there more to it?"
There is more to it.
You should be looking at backing up everything on your computer - OS / Programs / Data / Settings / Address Books / etc.
One of the easiest ways to do this is with Acronis True Image. This will make a compressed backup of your whole computer onto whatever media you wish. And it will also make updates to the backup whenever you wish.
aaa.acronis.com for details and a free trial download. You can purchase on-line for less than £20.