All prior versions of Windows I could set restore points as well as run backup if the system crashed I could restore it. How is this done in Windows 8?

System Restore is still available in Windows 8, however, the ability for SR to create automatic Restore Points has been problematic in this version.

You can still create Manual restore points.

Open Control Panel and select System.
On the left side menu, select System Protection.
In the System Settings section, select the C: System Drive.
Click the Configure Button.
Make sure that the Turn On System Protection option is selected.
In the Disk Space Usage section the Max Usage should be at least 10% of the the total space.
Click OK.
At the bottom of the System Properties box, click the Create Button.
Name the Restore Point Manual. (The date and time will automatically be added)
Click the Create Button.
The restore point will be created.
When it is finished, click the Close Button.

You can click the System Restore button and then click Next to check that the restore was created properly.