I hope you don't mind but I editied your post to make it easier to answer all of your questions.
BlindWrite, CloneCD, Alcohol
[li]I have read that Nero is good for some things, but not so much for backing-up.
[/li]If you want to copy documents or fiels then use this. Not very good at all for copy protections.
Different programs copy different things best. Damn where has my list gone.
Alcohol = SafeDisc, Starforce 1+2, SecuROM 4.85xx w/ emulation
Blindwrite = SecuROM 4.85xxx(perfect with Plex Premium)
CloneCD = SecuROM 4.85xxx(CloneCD + Twinpeaks + BWA), Laserlock, Ring Protech
Can't Do = StarForce 3, Tages
Do I want Blindwrite since it appears that I will need to be using bwa files?
BWA files are ONLY needed for SecuROM 4.8+
Do I even want CDRwin?
Your choice. To copy games with then no.
Also, what about this blacklisted virtual drive thing.
Newer copy protections can blacklist a virtual drive. When this happens you can either uninstall the drive all wait for an update to the program.
Do I want a virtual drive program (Daemon) or not.
It's a good way to check your iamges before you copy them to CD or to use the program without the CD in the drive. Alcohol comes with it's own VD.
I read where I should take off CloneCD if I had it prevent programs from not running because of the virtual drive issue. How do I have a program that I could need, like CloneCD/Daemon but then not?
There is no virtual drive in the newer versions of CloneCD at the moment.
All of the programs offer trial versions to test them out. Have ago with them to see what you like. To copy todays protections you could need up to three different drives and all of the programs plus a few others.