Hi Sharyn,
You have several options on the location that you would like to back up to; for example you can back up to an external hard drive, a network location, or on CDs and DVDs. When you choose a location to save your backup to, the wizard searches your computer and displays a list of all locations that you can use. If the location that you want to use doesn't appear in the list, it could be due to one of the following problems:
a.. The location is a tape drive. You can't save backups to tapes.
b.. The location is the disk that you are trying to back up. You can't back up a disk to itself. For example, you can't back up the contents of drive E to drive E.
c.. The location is a CD-ROM drive. You can't use a CD-ROM drive to make a backup; you must use a CD burner, also known as a CD-R or CD-RW drive.
d.. The location is an external hard disk or external CD or DVD burner that is not connected to the computer. Connect the hard disk or disc burner to the computer, and then click Refresh in the list of locations. The wizard will search your computer again for the connected device.
e.. The location is a USB flash drive. You can't save backups to a flash drive.
f.. The location is not formatted as NTFS, FAT, or Universal Disk Format (UDF) (also called Live File System). Backups can only be saved to disks that are formatted using the NTFS, FAT, or UDF file systems. For more information, see Comparing NTFS and FAT file systems.
g.. The location is either the system disk (the disk that Windows is installed on-also called the C drive) or the boot disk (the disk that Windows uses to start your computer-also called the startup disk).
You might find these Windows Help and How-to topics helpful in answering some of the questions you have about backing up your computer.
"Methods for backing up your files"
http://windowshelp.microsoft.com/Windows/en-US/Help/0625443e-f5c7-4bec-a5e3-3b7e00503c481033.mspx
"Back up and restore: frequently asked questions"
http://windowshelp.microsoft.com/Windows/en-US/Help/9eb3d150-fe33-41a0-b7f6-233d7fe4460a1033.mspx
"Back up your files"
http://windowshelp.microsoft.com/Windows/en-US/Help/699ce30c-13f1-46ec-9684-e84bf4109dd81033.mspx
Hope this helps,