Windows 7: Both "System reserved" and "C" partition cloned to external HDD: boot?

Can you succesfully create manual "restore point"? does system repair list it and is that working?

Snapshot is needed. It's like a photo how the disk contents is right now. You can continue working with computer but the backup is the situation at time of snapshot. Works same way as restore points work.

macrium uses the same system dll's and exe files as windows itself I assume.

you already created a macrium recovery cd (to be used in case of restore)?
I think you can backup as well with that CD(?) Since windows isn't running then it shouldn't create a snapshot

Kaktussoft, first thank you for the help. Yes, I get restore points (the last one in September) ... so, that seems to be working.

I'm quite disappointed at MS (at how fragile the system is; I mean, it's not like I went and intentionally tried to break anything ... and now their own tool cannot manage to create an image of their own product).

Yes, that would seem to be the case (as I've tried again with EaseUS and it didn't have issues with "Volume snapshot" ... not that I know much of the Windows internals).

OK, let's leave it at that ... hope that someone in the future will at least find this thread helpful. Thanks again.

Failed to create Volume snapshot
Did you receive this message with Macrium or Windows 7 system image backup?
Very sure you can create restore points and can perform "system restore"?

Macrium. From Windows themselves I got some "Shallow Volume error ... not enough space" (despite Explorer showing 320 GB free space). Anyway, apart from personal documents and some Win-only microcontroller software, its not like I'm passionately clinging to Windows (or any other OS, for that matter).

Dunno about "System Restore Points" ... you can't really check their integrity without doing the restore itself, can you? (And I wouldn't want to restore; besides this, there is no other problem ... that I know of.)

macrium just uses Windows 7 system restore shadowing. so it's the same problem
go to system properties and check restore points settings. is it enabled on C? only "prior file versions" or also "settings"? how much space maximum? how much space used?

Both are enabled, "previous versions" as well as "restore system settings". Max. space at 4.66 GB (current usage at 450 MB).

Try setting it to 10GB and make a restore point. Problem fixed?
Do you have a system reserved partition? If so, how many GB and how many free?

I do have "System Reserved" partition (thought, that every Windows 7 system has one of these): its size is (by default) 100 MB; 30 % of it is free.

(1) set restore space to 10 GB
(2) made a restore point
(3) the same problem persists (image below)

Your first screenshot suggests system reserved has used 30% and has 70% free. If this is the case then system reserved shouldn't be the problem. System reserved needs 50MB or more for shadow copy storage.