Bill,
There is no reason that I don't use Easy Transfer, Just never tried it. There is a way just to backup your files, To do that Run the Easy Transfer and let it scan for files to transfer, After it has scanned, You can Customize it by clicking Customize Option,

Also click advanced, and select only the files you want..
For your next question, You can backup your files on a Jump Drive, or external Hard Drive. To back your files, type Backup and Restore, in the Start Menu. If you have not set up a backup location, you will be prompt to set one up.. You then can follow the easy instructions to set up a backup.
After you re-install Windows 7 you can then Restore the files from your backup location, in the same area (Backup and Restore) and Just click Restore Files from another backup. All your folders and files will then be back on your newly installed machine...
Hope this Helps...