There are many solutions when it comes to backup and recovery operations. One of the most used are Acronis True Image Home, Norton Ghost and Easeus Todo Backup. These applications have the ability to perform all kind of backup using different methods regarding compression techniques, storage support, rescue media builders and so on.
All these three have the ability to create a rescue CD/DVD for and with your operating system. The best way to create a DVD like this is to first install a fresh Windows 7 with all its drivers, official applications, 3rd party applications, tweaks, etc. and then create a backup DVD with autorun support (bootable). For every operation you will have an on-screen guide showing how to make a perfect backup.