Windows 7 - Macrium image restore

Thanks for useful reponses.
Could we have more feedback pls on billberr12's last issue/question.
I basically want an image for 2 puposes:
(1) System broken but not the HDD.
(2) HDD broken.

Just had the first issue after I started using Nero. Image back and everything appears ok.

But I thought an image could be used on a replaced HDD. Is this not the case?
Now I'm worried.

A clone is a copy of a complete disk drive. An image is a copy of a partition. If you have only one partition on the drive, it amounts to the same. But if you have multiple partitions (which is usually the case), you can only restore partitions, not drives.

I'm looking for cookbook steps at this stage.

I have my computer, external hard drive, Macrium Reflect.
My main/internal HDD dies.
I go down to the shop and buy a new HDD and put it in the computer.
What should I have stored on my external drive and what steps are involved in having the computer back to the way it used to be before the HDD died?

Two questions.
1. what partitions do you have on your HDD
2. do you use Macrium free or Macrium pro

(1)
Here are the disk partitions
The first 17.5 GB contains a factory restore

100 MB and C: contain OS and applications

D: is essentially a data disk for photos, my personal software source code etc. Backed up independently.
(2) Macrium Reflect 4.2 Free edition (64 bit)

(I also have Paragon 10 Free, Windows imaging of course)

I think I'm going back to Acronis. I just don't understand Macrium Free nor Windows backup and restore. I do understand that if I back up my entire hard drive using Acronis, I can simply put in a new hard drive, boot from the acronis cd, and clone the old hard drive to the new one. I don't understand why anyone would want it any other way. I guess I am simpleminded, but I do know that my Acronis method works. I have used it for years with never one problem. Just my 2 cents.

With multiple partitions and the desire to be able to restore to a new disk in case the HDD fails, the cloning approach is certainly recommended. For that one can use Paragon, Norton Ghost, Acronis or Macrium Pro plus a few others.
The imaging with Macrium free is targeted at a partition going south due to a virus, malfunction, bad program installation, data loss, etc. Since those are 95% of the emergencies, I use this method. When I replace a disk (which I only had to do because I was replacing HDDs with SSDs), I use the opportunity to reinstall the system.

I always Image the Entire Drive as it is for the OS drive.

I have 7 on a 40GB SSD, which has the 100MB partition and the remainder for 7.

I find it easier to just image the entire thing as its easier to restore, even if moving it all to a new drive.
No worries about partitons or restoring 1 at a time. Just wipe the entire thing and restore.
others may have other opinions on the matter, but this is what I find the easiest.

I use Acronis however, so Im unsure if Macrium has a "Image Entire Drive" option.

For DATA partitions, I image just that partition however.