A:
The software is a watered-down version of Acronis True Image, so you should be able to image your whole HDD, WIndows system partition and everything. I've heard the version is not as good as full blown Acronis. If you install it, you can get Full version of Acronis for the price of an upgrade (~$20 per computer, I think). If you go to the Acronis site, the chat people can answer all your questions. They pursue new customers very aggressively.
I would never install Acronis because is permanent: google how to uninstall Acronis: is a three page procedure involving manually changing registry keys. Acronis is like a nuclear power plant in your back yard: when it works, is almost magically good. But if something goes wrong...you'll need very serious help.
That said, every local IT little store I asked suggested it for backup software. Still, I don't like invasive software. I would never use it.