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First of all please mention your product model no. whenever you are discribing your problem because each model have different solution to same problem many times.
Well, ya its bit difficult to degrade from vista enabled machine to XP but not impossible. The only one major issue is: Windows XP compatible drivers for your machine. If you had provided the model and make of your laptop, then i could have commented about the availability but generally Acer, Lenovo and Toshiba laptops have all drivers (XP and vista) on their website but in case of HP, its really become nightmare to degrade as HP people dont even have the XP compatible drivers for most of the laptops with them.
If you'll contact their service center, they wont be able to help you at all (as per my personal experience) thats the reason, we have stopped selling HP laptops for past 2 years.
Also, one more thing which you asked about databackup, well for that you can take an external drive to copy all your data from all partitions (listen carefully i am talking about DATA) but about programs, then sorry to say programs can never be copied. They only intended to be re-installed on windows XP.
Hope this will help
Regards,
Yogesh Munjal
Sanyo, Inc.
www.sanyoinc.com
Web Design 2.0 & Development