Yes. Don't trust the crap built into XP or ME though. Check into Roxio GoBack. It's quite good, and allows you to "GoBack" to a specific point in time on your computer. Or, if you deleted a file and need it back, you can mount a drive in the past and drag the file out.

And now, the main reason I recommend it above the built in stuff in XP. You blow up windows, and can't boot. Then hold a key on boot, select the time to go back to, and resume work.

This works by saving info about where data was last on the drive, and will copy it if something tries to overwrite that space. Once the buffer fills (a % of drive space set aside), it starts dumping the oldest save points. Defragging, or similar disk admin tools will overwrite the buffer quickly.

The people who wrote it (and then were aquired by Adaptec, then Roxio) are basicially virus writers. GoBack works like a virus on the system, ensuring nothing knows it's there, and allowing it to work. It's quite good, they channenged me and my co-workers to break a beta version, and we only found one or two things that could really trash it. Those have since been addressed.