SMART is a hard disk monitoring system that tells you if a hard drive is dying.
It's not always right, but it's better to be safe than sorry, and backup your files.
As far as how to do that, it depends if you want to backup just a few files, like personal documents or photos etc, or the whole system.
If it's just a few files, then simply copy them to CD/DVD using any burning program.
If it's the whole system, you will need an imaging program, like Ghost or Acronis True image etc. (You will need another drive or DVD burner to backup to)
The good news is that changing a hard drive in a laptop is no more difficult than in a desktop.
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