Basically, yes. Both will overwrite the current OS and all files with the backed up image. Windows 7 uses the built in Shadow Copy. You can do a restore from within windows.
Control Panel> All Control Panel Items> Recovery
Choose Advanced recovery options
If system won't boot, you can boot to safe mode and select Repair Your Computer on the Advanced Boot Options.
If you can't get into safe mode, you can boot from a a Windows 7 system repair disc (not to be confused with a recovery disk) which can be created from within Windows 7 (while your system is still working obviously) or you can download a ISO image from here: Download Windows 7 System Recovery Discs — The NeoSmart Files
And choose the System Image Recovery.
I personally have Acronis True Image, AND Windows images. Better safe than sorry. Obviously it's better to have your images on a 2nd hard drive. I haven't had to restore from either (yet, knock wood). A Guy