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Bare Metal Backups

I've got a single server running 2008 R2 Standard, with Remote Desktop Services installed (no active directory installed).  We are a small company so I don't have a lot of help in getting all this up and running.  So right now I do a bare metal backup each night (actually around 1 am) to an external hard drive and in the case were the server dies, I get another server, and using the bare metal backup and my Server 2008 R2 DVD, restore the image.  My question is: Is this the best way to do this? Is there a better way? Is the bare metal I run each night just copying the difference from the night before or is it completely replacing the whole image each night?  Should I create a single "master" bare metal backup once and then do another kind of backup to make things quicker?

Thanks

Kevin


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