You have raised several issues. I will try to address them in turn.
Your Generations v4.2 is not Windows XP compatible. Only the latest Generations v8.5a is XP compatible.
You say that you can't make a backup. What happens when you go to the File menu and click Backup? It should save a rb1 file onto your hard drive, and that rb1 backup will contain all of your data.
Don't expect to be able to make a backup directly from your v4.2 to a CD because that is not possible, not even in later versions of Generations. You should use your normal CD burning software to copy the rb1 file from your hard disk to a CD. If you really can't make a rb1 file, you should burn the folder that contains your data to a CD. You should find that folder in your Sierra/Gen4 folder.
Not being able to print is strange. That may be a consequence of using v4.2 on XP.
The way forward I would suggest is to buy the latest Generations v8.5a (we supply v8.5a at £19.95 with free delivery). After v8.5a is installed you go to EasyTree, click the Upgrade button, navigate to where your v4.2 files are saved, and your data will be copied to the new .uds format. Your rb1 file is a second (reserve) method of transferring your data if you encounter any difficulty. You may e-mail your rb1 file to me to check if you wish. At least that will ensure that there is a copy of your data away from your computer which can only be good.
I don't think you need to print everything out, unless you really want to. That would be quite an extreme measure to take. From the information that you have provided I think your data is reasonably safe, so don't panic.
In the meantime you should go to the File menu, Export, GEDCOM File, which will create an additional copy of your data in a different format. The more copies you have the safer you are.