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It also works if you simply pack the whole Steam folder into multivolume archives. I did a clean install of Windows three times in the past two years, and I'm still using the same Steam folder (it doesn't complain if the registry entries are missing, it will create them automatically).
Of course, "official" backup routine is good thing for most games (not for Trackmania Forever since it doesn't use .gfc files and restoring the game from backup actually means downloading the whole game again), but if someone wants to preserve savegames, settings etc, (s)he can simply backup entire Steam folder.
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