Hi Abdul,
the automatic (or scheduled) backup utility (new in 1.2) allows you to backup every course in your
server at a regular basis. Then, backup files can be restored using the "Restore Course" utility (since 1.1).
But this is different from backup and restore an entire Moodle Server (
database and moodle_data). This type of backup isn't a "course" backup, but a "site" backup. And you can use it to "restore" all your site in some steps. You can find some information about this type of backup in
http://moodle.org/doc/ (in the upgrading section) and searching the "Using Moodle" forums.
Hope this helps you.
Ciao