Win 7 Disk Image and back up

It worked okay for me, and I tested the image to ensure that recovery worked. It did.
However, I still decided to use third-party imaging software because I didn't like how the built-in backup tool insisted on saving the image file in the root of my external hard drive (you couldn't save it in a folder).

Oh sure, you could move it into a folder afterwards, but then the System Repair Boot CD couldn't find it.