It's a very difficult question to answer because there is no set procedure, but I have a question for you.
If this laptop came from a Maker with Windows 7 already installed, (what is known as an OEM system), have you been advised by the paperwork and by any Welcome Message when you first started using the system, to create "Recovery Disks"?
If so, have you done that? Those disks will hold the data to allow you to recover the system back to factory default should you ever need to.
Everything else can be backed up to any external media you choose. By everything else, I mean your personal data like Documents, Photos, Music and Videos, as well as browser Favorites or Bookmarks, email settings, emails, and so on. I use external hard drives, and with those backups I do, I also backup the installer files I download for installing applications.
There are other ways, but those Recovery Disks are a crucial first step.
Mark
I just got a new laptop with Win7 on it. I definitely want to backup my computer but does the backup make a copy of the OS? Also can I backup to an external hard drive instead of a CD? Thanks in advance

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