Microsoft made a confirmation statement today that Windows Home Server will not have its own backup feature.
“Power Pack 1 will not provide a tool to back up your backup database. It was an announced feature, but it has been removed because it doesn’t meet the quality bar. I know of at least half-a-dozen bugs submitted around that feature that left end users in a bad place with no obvious way back,” said Ken Warren on a forum.
It was announced in January and it was called “Windows Home Server Data Backup.”
Microsoft also delayed Power Pack 1 because of a data corruption bug.
Source: COMPUTERWORLD

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Its not the end of the world, there are many free decent backup apps or paid for apps.
One of my favorite is DriveImage XML