You just need to have a rooted phone and ShabbyMod is optional. I use Titanium Backup. The reason why you need a rooted phone is because backup apps need permission to access your root to backup your phone's settings and data.
To use Titanium backup click on the Backup/Restore tab > hit the menu button(lower left hand corner of your phone, not on the screen), click batch, and under Backup you have several options. If you just want to backup your system data(including stock apps) and settings choose "backup all system data"
***Note: when you first load the app make sure your backups are going to your SD card. You can check it by hitting the menu key > Preferences > scroll down till you see Backup Settings > Backup Folder Location and there should see the default folder: " /mnt/sdcard/Titanium "
When you want to restore your settings/data you may do so by going back to Backup/Restore in batch mode and choose one of the restore options. You can also choose which ones to restore by checking off it in the list instead of restoring everything. The same holds true for backing up from the instructions above.
***Note: If you do a full wipe of your phone after backing up or installing ShabbyMod or aany other rom, you will most likely need to redownload TB from the market since it will not be on your phone.
I think I pretty much covered on how to use Titanium Backup! Oh one more thing the free version only lets you backup one set at a time but you could bypass this probably by making a copy of the backup folder from SDcard to Computer then deleting it from SDcard after. However, I haven't tried it yet since I bought the Pro Key, which is worth it since it's an invaluable app.
Good Luck!
