First, if you have to 'reload' the backup image it will reformat if you choose to restore on to the same place (HD/partition) backed-up. Therefore you'll need to make regular backups. But what I like about Acronis True Image is that it allows you to mount an image and browse through it.
To start off, you'll need an almost equal amount of hard disk space on a separate HD or partition for the image TI creates (.tib).
Then, you can either do it 2 ways: in Windows or through the bootable media. I prefer the latter because I feel it creates a 'good' image since no background processes, etc running. That said, I've never had any problems restoring images created within Windows.
The settings I use are (using version 2009 Home which I assume is more or less the same):
Data to backup selection: MY COMPUTER
Backup method: FULL
Backup options: Compression level HIGH, Additional settings VALIDATE BACKUP... (makes sense since you don't want to find out that the image is no good at the wrong time).
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