Just so I understand: Windows XP SP3 FTM 2012.
On my computer there are FTM files in two places. One is in the My Documents folder. In this folder are all of the FTMB, FTM, and BKUP files Plus the Media folders, templates, etc folders.
In The Windows Profile file Application Data there is a folder FamilyTreeMaker in this folder there are two Sync files and an XML file.
The recommendation is that the files in both places be backed up. Correct?