Get a 800 MB CD dude & take a backup. It should solve your problem.
EuroVision 800 MB CDs are available in the market. Yes, you can restore
XP from the CD.
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* Imagination is more important than knowledge.
-Albert Einstein
Another solution is use backup splitting in the options menu. It will allow you put the backups in different cd's. If the back up is 1024Mb, then it will be stored in two cd's and you can restore from these cd's
Depending on the version you are using, Acronis gives you various built-in compression options. You can choose the "maximum" (or highest?) level and save some space. The best option is to split your backup files. As time goes, you will install more software and the backup size is bound to increase...then no amount of compression will help you. Its better that you get used to making split backups