I dont have the Windows XP Service Pack 2 installed on my computer yet.
I was going to install it today, but before I did, they recommended that I backup my system before I do so...

My question is, how do I backup my system and protect all my files from being erased?
I do not want to go through the hassle of sending my files to a CDR or other storage device in order to back them up.
Is it even worth backing my system up in the first place?

XP will ask you if you want to save file for uninstall, you might nameit ntuninstallsp2. This you could delete after you are comfortable with the install. Personally I have not had a problem with SP2, I would just go ahead and install.