Copying database under a different name in MSSQL

From Books Online (the help file)

BACKUP DATABASE AdventureWorks 
   TO AdventureWorksBackups ;

RESTORE FILELISTONLY 
   FROM AdventureWorksBackups ;

RESTORE DATABASE TestDB 
   FROM AdventureWorksBackups 
   WITH MOVE 'AdventureWorks_Data' TO 'C:\MySQLServer\testdb.mdf',
   MOVE 'AdventureWorks_Log' TO 'C:\MySQLServer\testdb.ldf';
GO

http://msdn.microsoft.com/en-us/library/ms186858(SQL.90).aspx

HTH, Stu

You are right to be considering COPY ONLY if the production database is set to Full Recovery mode and log backups are occuring frequently.

As MSDN/BOL states

A copy-only backup is a SQL Server backup that is independent of the sequence of conventional SQL Server backups. Usually, taking a backup changes the database and affects how later backups are restored. However, occasionally, it is useful to take a backup for a special purpose without affecting the overall backup and restore procedures for the database. For this purpose, copy-only backups were introduced SQL Server 2005.

The syntax for this is

BACKUP DATABASE database_name TO <backup_device>  WITH COPY_ONLY

If taking a backup isn't going to affect the backup strategy in place, then you can follow the steps that Stuart Ainsworth gave.