The install will ask you if you want to Update Automatically. If you choose that it will start Updating before you open Windows Update. Either way, open it right after install, select all the Updates including optional to install - or select them in small groups if you want. Win7 is not like XP where you need to worry about Updates malfunctioning - the process is totally interactive with your OS so it provides only what you need except in the rarest case. You most certainly want any Drivers given in optional Update unless Win7 rejects them.
You do want to use Win7 Backup Imaging which is built into Win7. This is the modern way to back up your OS and programs once you set it up so that you never have to reinstall again, just reimage from backup using your DVD/Repair CD and the stored image in 15 minutes and you're back up and running.
Here is how to save a backup image to another HD:
http://www.sevenforums.com/tutorials/663-backup-complete-computer-create-image-backup.html
This is how the image is restored:
http://www.sevenforums.com/tutorials/675-system-image-recovery.html
If you want more flexibility as to what is imaged and where it's restored, use free Macrium Reflect or Paragon Backup 10. Win7 Backup imaging is new and will only restore the partitions selected for backup to exactly where they were on the HD or its replacement.
To avoid allowing a program to startup with Windows, watch closely for that choice (as well as spyware toolbars they like to sneak by you) during program install - don't allow updaters or checking for newer versions since they'll do that when you use the program anyway. If you find that or any other program has still snuck into your msconfig>Startup list then follow these steps to remove it:
http://www.sevenforums.com/tutorials/1401-startup-programs-change.html
Be aware that may persistent programs that spy to sell your consumer information like RealPlayer will continue to sneak into your Startup list unless you find the near-hidden Setting in the Program itself to turn off. It takes some searching for "Preferences," "Updates," "Settings," etc to find the listing to turn off its Updater but you will get the knack of it after awhile. For example, Adobe Reader will keep turning back on its Updater after updates in msconfig unless you open it and turn off that option under Edit>Preferences.