Yes, you'll have to use an imaging program (and will need enough storage to store the image).
You may want to check this link for freeware apps:
http://www.bleepingcomputer.com/forums/topic3616.htmlAlso, some hard drive makers will provide a "disk clone" utility that'll do the same thing.
I prefer Acronis True Image for this purpose myself, but it costs about $50 US. But it's very simple to use, very flexible in the options that it gives you, and with it you can be back up and running within 20 minutes.