What you describe is indeed the best way to go about this:
I'd like to hook up an external
disk, have everything copied to it,
reinstall XP, reinstall the apps, and
grab all the data back from the
backup.
Some details: Ideally, you only need to copy the user profiles (stuff under "\Documents And Settings", or whatever it is called in your version and localization). But some programs store stuff like configs in their program directory (ugh) or in the registry.
So back up everything, reinstall, then restore the user profiles. Check everything works and is complete; if something is missing, you'll have to dig through the copy.
Or just install Linux, which does not need regular reinstalls ;-).
I've done it. (>Д<; – Jeshizaemon – 2011-03-28T22:50:14.747
1step 2.5 UNPLUG the usb drive until step 4 is completed. trust me. – Chris Nava – 2009-10-29T19:48:29.230
Added your step in there ;) That's a good idea, to prevent the temptation of wiping the wrong drive. – Will Eddins – 2009-10-29T19:55:02.883