Did you uncheck the entire C and external HD's which you had checked to backup besides your Libraries? I never heard back from you when I advised that in one of your threads.
Are you intending to Clean Reinstall - Factory OEM Windows 7?
If so then I would not mess further with Windows File Backup until after you have a fresh new OS which has not been ruined by the chronic "fiddling."
For now, sort all of your data into User folders and drag each one to the external. Once this is done and you have a Documents, Pictures, Favorites, Music, Downloads and Desktop backup folder on external which contains all of your data that you need, then you are ready for the reinstall.