Partition as recovery boot disk?

My girlfriends laptop comes with a partition that acts as a restore disk. If there is no way to get into windows, she can just restore the laptop without a disk through the post screens.

I was wondering how i could create something similar to this for XP?
Is there any kind of software that can do this?
I mean, creating a boot disk on a cd/dvd isn't too much of a problem, but they get scratched, lost, broken, whatever, and if it's the only one I have them i'm stuck.

Any suggestions is appreciated.
Thanks.

EDIT: The software used for my girlfriends laptop recovery partition is PC Angel
(I would buy the stuff, but their website makes you sign up to it before you can even see what you're going to buy, or for how much, so i have no clue. I just want to go into a bestbuy or compusa or circuit city or something and just pick up a software box and use it.)