As this is presumably a fairly new system, correct me if I'm wrong on that, installation will be simple. connect the second drive to the Middle connector on the ribbon cable and set the jumpers on both drives to Cable Select.
check first that the new drive is detected correctly in the BIOS then load windows, the new drive will be shown in 'My Computer', you will need to right click and format the new drive (this is all done within windows with simple instructions).
then as to the backups you could just use the tools provided with XP, The XP backup utility is installed by Default with XP-pro but is on the disk in XP-home you will need to instal it, unfortunately some manufacturers have been known to leave it off their 'recovery' CDs if your machine had XP pre-installed.
but not to worry there are many,many alternatives. personally I use Norton Ghost and find it works very well and simply but I'm sure some of the other good folk here will have other recommendations for you to consider.