I created a system image of my C: drive and stored it on my F: (IDE) drive.
If I went to the panel take a second system image, I could see my first one just under the device selection. I never took the second image, I was only trying to see the first one listed to prove it's there.
I then reinstalled Windows 7 and reformatted my hard drive. I assume a new VOLUME id is assigned when you reformat. When I'm back to my desktop after the new Windows 7 install and I try to recover a system image, it says none can be found. I assume this is because the volume from the Create System Image is now different than the current C: drive.