Hi
I think you are very sensible taking it one step at a time.
Just to add a little more information, the reason why it is a good idea to take a disc image is that when you have a verified disc image on an external hard drive you have in fact made an image, rather like a photograph, of everything on your hard drive and I mean everything. Not just your data, your emails address book, favourites, files, letters, invoices, photographs, spreadsheets, but your complete Windows operating system including all your settings.
In the event of serious trouble, perhaps where System Restore or the Recovery Console has been unable to help and you cannot boot your computer into Windows, not even into safe mode then you will bless the day you had the foresight to take an Image.
You can boot your computer by inserting the cd that your image programme say Acronis or Ghost provides and restore your image from the external hard drive and be back and up and running very quickly (takes me no more than 40 minutes)
Don't forget however that the image or photograph of your drive will be put back exactly as the day it was taken so if you have written lots of new documents since then you will need to have taken a back up of them so you can get up to date quickly. You will also need to apply Windows updates and update your firewall and anti virus definitions to allow for the updates since your image was created.
The above is only intended to give you an overview, but in addition its important to have a note of your Windows product key (the one that is actually encrypted in your computer, which might not be the one in the COA stuck to your machine ! Some OEM's preinstall, (without any intent to cheat) a different key to the one stuck on your machine.)
If you go here:
http://www.belarc.com/free_download.html
you can download a free programme that will tell you the product key and a lot of information about your computer that it would be wise to keep.
The ideal time to take a disc image is when your machine is running fast and smoothly, when you know there are no harmful elements present like spyware or viruses, when you have cleaned out all your clutter of temp files, cookies, java cache and the like and defragmented your drive. (But please don't leave it too long as this Utopian state doesn't last forever!)
The disc image will use compression to reduce the size of your disc image files and this will mean for example that 10Gb of hard drive would be compressed down to about 6 or 7Gb which is a bonus.
Once you have a good experience of the method and programme you can move on to more fancy stuff like partitioning your drive into 3 partitions so you have your Windows system and programmes on C: with your Data on D: and an extra Image back up on E:
This way in the event of trouble you just format C: and reinstall Windows and all your programmes on C: and you are back in business and with all your data files intact as they are on the separate D: partition. Leaving you just with Windows updates and AV definitions to deal with.
I think this is more than enough to be going on with…so Good Luck
Regards
paws