This Technical Brief describes how you can you use your Windows Home Server to automatically do daily backups all of your home computers, up to 10 of them. 

Obviously you'll need a decent amount of disk space on the server to do this but what you'll end up with is backups that you can recover your home PC's with in case of a disaster such as hard drive crash by restarting the home computer from the Home Computer Restore CD.  When you connect to the home server you'll go through a wizard that will give you the option of recovering single or multiple hard drives.

Another handy feature is the ability to restore individual files and folders from a specific backup stored on the home server.  No more losing all of last summers vacation pictures because they were on the hard drive that crashed!!

The home computer backup solution in Windows Home Server has a single-instance store at the cluster level. Clusters are typically collections of data stored on the hard drive, 4 kilobytes (KB) in size. Every backup is a full backup, but the home server only stores each unique cluster once. This creates the restore-time convenience of full backups (you do not have to repeat history) with the backup time performance of incremental backups.

Click on the link to get the Technical Brief Home Computer Backup and Restore.