AM I understanding the Microsoft site back up explanation correctly?
If I do a backup using Windows 7 back up and restore, I may not get all the files I need of a RIP program we use to run our imagesetter?
Here is what the Microsoft site says: Notes
All files in known system folders (folders that contain files that Windows needs to run), and known program files (files that define themselves as part of a program in the registry when the program is installed) will not be backed up even if they are in a selected folder.
Should I look at different software and an external drive that will give me an exact copy of the main drive on the PC?
If our hard drive goes down, I want to be able to replace the drive, and restore to what I had before with all the RIP imaging software program files as before?
The free version of Macrium Reflect is popular with many members here and will do what you want. Here is a tutorial on how to use it. I first started with the free version of Reflect and was happy with it. I now use the paid Pro version but you should be happy with the freebie.
Samsung 128GB 840 Pro SSD (1),
Samsung 4TB 850 EVO SSDs (4)
Samsung 4TB 850 EVO SSDs (16) external backup drives used in 2.5" hot swap bays in the computer.
PSU
Corsair HX750w
Case
Antec Two Hundred v2 (modified)
Cooling
Cooler Master GeminII S524 120mm (fan replaced with a 140mm)
"Windows Backup" itself is only to back up selected folders and the files in them. It will not restore Windows or programs, but only the selected folders and the files in them.
A "System Image" will include everything on your Windows hard drive and drives marked as system.
If you like, you have the option to include creating a system image when using Windows Backup to be able to use both backup features together though.
The tutorials below can help give you more information about both, and how to use them. Please feel free to ask any questions you may have.
For the average user, I consider the built in windows backup easier, (I use them myself for simplicity) but Macrium Reflect is a good tool as well. I just prefer using windows built in backup solutions that Brink suggested.
I would say try both, and see what is easier for you to understand and follow, especially with the tutorials provided.