How to simplify the ROM update?

[Gilliland]

OK, this is the second time I've updated the ROM on my phone. The update itself is easy enough, and it's pretty trivial to restore my contacts and basic phone data. But reinstalling all my software is lengthy process, and reconfiguring it all is a HUGE headache! I know that some people here are replacing their ROM images much more often than I am, so there must be some way to solve this that I haven't yet discovered.

What's the secret? How can I easily backup and restore all my applications (and all their settings) each time I replace the ROM image on my phone?