You can use USMT to backup the profiles. This will work for domain and local users. You will need to read the documentation, but its pretty easy. This will keep all settings as well.
Then to create an image you can create one image and use sysprep to create a generalized image of the OS. This will take out anything that's not needed for the OS, but keep the software you installed on there. You can then always load this sysprep image up and it will take about 15-20 minutes to install the OS on the computer. This is slower than creating a binary copy, but it gives you the advantage of creating a general install to put on any computer.
You can create an exact copy which will be faster to restore, but you need to keep multiple versions for each users. There's plenty of programs out there like acronis and norton ghost. I personally use acronis and it works great!
When you decide what you want to do or what you need, then you can always ask on how to use that utility if you are unsure. USMT is a command line utility, but it really is simple to use.