Norton ghost will work great for this. You will need Ghost 2003 to support
WinXP/2000 (NTFS).

I a matter of routine, when I set my system, I get everything updated and set to what I like (drivers, apps etc...) and then use Ghost to make a system restore DVD.

Works like a charm.

With a little work, you can make the DVD bootable so a system restore would only take and hour or so.