Windows 7: Paragon Backup & Recovery 2011 - Advice On Using?

Hi...
I've installed Paragon Backup/Recovery 2011 and would appreciate some help, perhaps from someone already clued up on Paragon or a regular user.
I'm running Windows 7 (64-bit) and set 'System Restore' & 'System Image' for Windows 7 on a daily basis.
I'd like to try Paragon and use it instead of Windows for backups.

My main aim is to to be able to restore my system to any point before something went belly-up..

First of all: is ditching Windows Backup to be recommended over Paragon?
I've never used Paragon before so am treading cautiously at the moment.

My setup:
I have two 500Gb disks (not allowing for space already taken up with files etc)
My Disk Management setup as shown by 'Diskmgmt.msc' is:

Disk 1 C: = 500Gb
Disk 0 = 2nd Hard Drive = 500Gb

At Disk 0 there is 'System Reserved' partition = 100Gb



My query:
Creating a Paragon backup by clicking on 'Disks/Partitions' brings up a window where you tick what disks/partitions you want to backup.

My second Hard Drive (Disk 0) is used only to keep duplicates of important files to hand, so I don't need to back that up with any regularity.

That means my main backups will be for Hard Drive (Disk 1) C:

So, in the Paragon window (bottom section):

I tick 'Basic MBR Hard Disk 1'
This automatically also ticks below it:
1. First Hard Disc Track
2. Master Boot Record
3. Local Disk C:

Now, here's where I'm unsure:

In the top section of the Paragon window (which relates to Hard Disk 0 - ie the drive I DON'T need to backup) is the 'System Reserved' box.

Two crucial questions I need answered then:

Do I tick 'System Reserved' PLUS all of Hard Drive (Disk 1) as above or just Disk 1?

Will this Paragon backup be equivalent to Windows 7's 'System Image' or 'System Restore'??

Forgive my ignorance on this software, folks, but I have to be sure before I entrust it with important backups.

I understand how to use 'F8' to activate Windows 7 'System Restore/Image' but Paragon seems to offer a much slicker way of doing that. Also takes up a lot less space....

Any advice or suggestions would be welcome.

Many thanks