I'm getting mixed signals on this. I use Acronis myself so there is no issue there.
But, I have clients that want to only use the Windows 7 backup feature to backup the hard drive. Most of what I've seen, including the Tutorial on here, states the Windows 7 backup only backs up NTFS partitions and NOT FAT partitions.
There is one of the "regulars" on the Dell forum that states the Windows 7 backup will do all partitions, whether FAT or NTFS.