I did some alterations as I wanted to backup more than just
the home dir. The include file determines what is to be
backed up now.

The new rsync command (now uses in and excludes and "/" as src) :
$RSYNC								\
	-va --delete --delete-excluded				\
	--exclude-from="$EXCLUDES"				\
	--include-from="$INCLUDES"				\
	/ $SNAPSHOT_RW/home/daily.0 ;

Exclude file (the stuff we dont want) :
#rsync script exclude file
**/.pan/messages/cache/
**/.phoenix/default/*/Cache/
**/.thumbnails/
**/Desktop/Trash/

Include (what dirs to be included):
#rsync script include file
/home/
/home/**
/var/
/var/www/
/var/www/**
/etc/
/etc/**
- *

Note the "- *" for excluding everything except the dirs mentioned
in the include file.
Also note the "/var/" entry. To backup /var/www/* , you need to
include /var/