I prefer Backup the Registry and SyStem State in batch, without a backup device, though using Makecab.exe is a nice idea.
Microsoft Knowledge Base Article 318149 contains the following summary:
NOTE: The solution that is described in this article is not supported by Microsoft.
Use this method at your own risk.
You may be able to resolve many Windows issues by restoring a backup of the registry that you created before the issue occurred. This article describes how to create a batch file that you can schedule to create periodic, compressed registry backups that you can later use to restore the registry to a known state. Also, if you cannot start the computer, you can restore a registry backup from the Windows 2000 Recovery Console. The batch file creates up to five backups. After five backups are created, the oldest backup is deleted when a new backup is created.
This process uses the Regback.exe tool for backing up the registry, and uses the Makecab.exe tool to compress the backups. Makecab.exe is included with Windows 2000. For Windows NT 4.0, this tool is available as part of the Microsoft Cabinet Software Development Kit (SDK). For additional information, click the article number below to view the article in the Microsoft Knowledge Base:
310618 Microsoft Cabinet Software Development Kit
Regback.exe is a Resource Kit tool. For Windows NT 4.0, use the version that is included in the Microsoft Windows NT 4.0 Resource Kit. For Windows 2000, use the version that is included in the Microsoft Windows 2000 Resource Kit.