As for creating a image why all the updates will be on Windows update for a long time.
Hammey,
There are several reasons why it makes sense to have an image backup of your system whatever operating system you use but with the loss of Microsoft support for XP, there is one more reason why the XP user should consider it.
An XP system image created immediately after the final Windows update, should the need arise, will provide a more convenient method of restoration than reinstalling XP and then searching for all the relevant Windows updates, downloading them, installing them and reinstalling drivers etc. Admittedly, the latter will give you a cleaner, smoother system and may be preferable for those who have the time but the option of having both strategies available must be worthwhile.
Brief mention has been made of Linux on this thread and disabling the network connection within XP. That is probably the safest option for XP users who can still use their XP software and peripherals but use Linux for all internet activity. Not quite as safe is to still keep XP internet connections but only to use XP for non-sensitive internet activity while using Linux for banking and other activities where the utmost security is required. Linux distributions, as previously mentioned, can be run as live discs or they could be set up as a dual boot system with XP.