John,
Look at Image for DOS and Image for Windows by Terabyte Unlimited. I use that exclusively for WIN 7. Make inital backup with DOS, then Windows. Blows away the native backup.
I agree on NAS. In fact, I use NAS for backups, but never for bare metal. The native backup program in 2008 will do automatic incremental (deduplication type) and allow you to make literally over a 100 backups on a terabyte drive, replacing the oldest when space runs out. I have tested on sandbox many times. It is sweet. Of course, if you combine Windows Image Backup with Backup Assist, you are in heaven. I still think the ability to insert the original DVD and back up from there is awesome.
