I use DriveImageXML to create images of my live hard drive. It works perfectly with Server 08, can be scheduled and is 100% free!
One of the best programs I have found. It is also part of the UBCD4Win, so you schedule your backup or run it manually (it uses VSS so it snapshots a live system), back up to a second partition or network share, and restore by using the UBCD4Win.
