Yes Mark...you got it! Sorry I can't articulate myself as well. However I am looking to also save the "data" such as financial documents, office documents, pics, music, and movies that the user has stored on the system. Unless what you wrote said that as well and I'm not reading it right...Ah my lack of communication skills
After posting this I started thinking about using the User State Migration Tool in conjunction with MDT 2010 to automate this process. It should work (though will not be able to restore applications) but I doubt it will have the ability to make the backup and restore quite as surgically precise as I want.
I'm going to test out a few things and when I find a good method I will be certain to post back here.
Also to Mark: Laplink PCMover seems like it can actually do alot of what you stated if not all, but the problem is licensing and not being able to this offline (ie without installing software on client machine). Still waiting to hear back from laplink about a business solution that may have the additional features we're looking for...you may want to contact their sales department as I did.