I believe that I have found a solution to backing up applications and system data into an image file. This may be of some use to anybody looking to backup their system just in case.
1) On the app marketplace download a program called Titanium Backup. You only need the free version for what we need it for.
2) Open the application and on the menu select 'Batch'.
3) Here you will see a large amount of options. Under the section 'Backup' choose the option to 'Backup all user apps and system data' and then press 'Run the batch operation. Now there will be a pop-up progress bar that shows each apps or piece of system data as they are being backed up. Once the backup ohas been completed exit the application.
4) Plug the tablet into your pc/laptop using the USB cable and turn on the USB storage.
5) Go into the Arnova folder on My computer then sdcard>titaniumbackup. The file directory should be something similar to arnova10g2/sdcard/titanium backup. Here you should see all of your backed up apps and system data.
6) Now you need an image creating software. I personally prefer to use imgburn but of course others may have their own personal preference.
7) Select Create an image using files/folders.
Select the folder that contains the backed up apps and data as mentioned in number 5.
9) Select the destination for the image file to be created. DON'T FORGET TO CHANGE THE FILE TYPE FROM ISO TO IMG.
10) Finalise the options and then voila, you have your image backup there, ready for use.