Confused about XP Backup and ASR

The help on ASR BAckup says that it will not backup the
data, but create system files backups, and create a
floppy, from which you do an ASR restore of the computer.

But, when I go through the wizard and to the ASR backup,
it creates a complete backup of my C: drive, and creates
teh disk.

And, it seems as thought it does NOT change the archive
bit on the backed up files.

I want to create a "full" backup, and have teh sytem do
auto backups every night (Not sure if I should use
differential, or daily.)

Can anyone shed some light on a best practice method to
use XP backup? (I have 3 drives: 2 80s, and 1 160. Plan
to backup the 2 80s to the 160)

Thanks