The cooler method for maintaining a complete, bootable backup, though, is to flash the device and get the OS setup how you like it with all of your favorite applications and hacks installed. Then copy that over to an SD card and boot from there. Then if anything ever goes wrong, you simply boot from the internal flash and copy things over again.
That's exactly what I meant. That's what I do. (Actually, I haven't had anything go wrong yet, but that's what I'm set up for.)
Well, actually, maybe my approach is a little different. After I had everything like I liked it on my SD card, with only what I considered very safe, stable apps, I copied that card. That's my ultimate backup, and with only apps, settings, etc., it easily fits on a 1GB USB flash drive.
I use my flash a little differently. For example, I don't password protect it but I don't put usernames or passwords in it either. That's my out-on-the-street OS. If I need to look up a translation in sdict or see a Google Map, I can get to it quickly. If I'm in a cafe and want to write an email, I bother with inputting my password. Usually I'm home, and I boot off the SD card, where I have my passwords, etc. automatically filled in. If I lose my N800 out in the world, the average thief or finder isn't going to break my 5-digit password, and my personal info will remain safe.
