I agree 100%.
Use the W7 Easy Transfer Wizard to save your files and settings before you start to an external source. After reinstalation run the restore file.
Just be careful with this. One time, I went from Vista 64 to Vista 32 and if I remember correctly, it stated that I couldn't use the 64-bit ETW files or at least, it couldn't migrate the program settings (like Outlook settings). I think I had to migrate the settings manually (basically, backing up and restoring the profiles using backup/restore). I just know that migrating from 64-bit to 32-bit is not as smooth as going from 32-bit to 64-bit when it comes to transferring profiles. Maybe it's easier under Windows 7 but I wouldn't know as I won't ever be going from 64-bit to 32-bit again.
If you can, I would install the 32-bit OS as a secondary OS so you can dual boot until you get everything working correctly. In any case, backup the profiles on your 64-bit using Backup & Restore just to be safe.
Correct, but he's going from 64 to 32-bit and so using Easy Windows Transfer is not as cut-and-dry as it is when going from 32-bit to 64-bit. Due to the architecture change from 64-to-32 bit, migrating your app settings is not possible. Your files (pictures, docs, music) will transfer but not your settings, so you have to remember what they are.
But still, it's not impossible yet as you stated, either way requires a fresh format and install.
I guess my question to the OP is why would you want to go back to 32-bit?
I've never used easy transfer wizard. Just drag my personal files to to an external drive or flash drive when loading up a new OS. Keep most of my important files on the Slave. No need for the wizard, which I have tried and didn't need.