Well as for the programs, you would have to re-install it
Built in windows 7 backup is quite good too.
For your user settings, like favorites, mail profiles etc you can use the windows transfer wizard and then import it back into your new machine, that way you would ahve your pictures, documents (stored under your username documents, pictures,downloads, videos)
anything under your userfolder would be backed up with the transfer wizard, it will give you the option to customize it, for e.g, if you are not interested in moving / copying your videos you can de-select it.
you would have to use a usb hard disk for that to happen and your profile will still be on the old machine.