Disk utility has RESTORE which will also clone your system but not the Lion Recovery partition. Oddly Apple did not 'endorse' making bootable clone of the system which works too but most choose Carbon Copy Cloner - it works more consistently; it allows for smart update of the backup volume. Both can backup to a sparse disk image if desired.http://www.macupdate.com/app/mac/7032/carbon-copy-cloner
Create an OS X Lion Install disc
You should have bootable backups, useful for doing before applying or installing any updates or programs or making changes. I would definitely look at TimeMachine as well. One backup method or set is never enough.
Used ML Recovery Mode?