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#21
Please check out the folder and file replacement capabilities of Backup & Restore. Play around with backing up the system image AND data. You will find that you can restore files & folders with the built-in capabilities of Win 7 Backup & Restore. Win 7 stores the folder and file backups in .ZIP files.
But I prefer to extract from the mounted VHD (the image file).
Remember you can perform all Windows Explorer operations on a mounted VHD file.