How to create backup & recovery on USB flash drive?

Here is my machine of which I need a system backup & recovery.
Acer Aspire One D150-1Bb
CPU:Intel Atom processor N280 (1.66 GHz, 667 MHz FSB )
RAM: DDRII 1GB
HDD:160GB(SATA, 5400 rpm)
OS: Windows XP Home Edition sp3
(No built-in optical device)

Boot options in BIOS:
1. IDE 0 : TOSHIBA MK1652GSX
2. IDE 1 :
3. USB FDD :
4. Network Boot : Atheron Boot Agent
5. USB HDD :
6. USB CDROM :

How should I do with Paragon Backup and Recovery free to create the backup & recovery to and fro a USB flash drive ?

Thank you!

 

1. Install B&R12free (with VSS driver). Restart Windows.
2. Plug the USB flash drive, run B&R12free.
3. Menubar 'Tools' -> 'Recovery media builder', write recovery on your USB flash drive.
4. Exit B&R12free, safely unplug USB flash drive.