Question: Is backup necessary if I use System Restore?

Id rather do it the other way around personally, using disc imaging.

Weekly full images with daily differntials, rather than rely on the built in System restore.
 

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Well System Restore only restores the system, not your personal files which should always be backed up. System restore also frequently only goes back a few days and is not really a replacement for a full system backup.

So depends on what you meant by "backup". You should always backup all your personal files, email etc. Personally I don't care as much about backing up my system, I have almost never had to reinstall windows without wanting to due to hardware or version upgrades. So I don't actively backup the system, just my data, but that's me.
 

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Hello Bladerunner and welcome to Seven Forums.

System restore (from a restore point) serves a very limited function.

System Restore - Windows 7 features - Microsoft Windows

You can get beter protection by doing a system backup which allows you to save your most important personal files.

Backup and Restore - Windows 7 features - Microsoft Windows

The best protection is from a system image. This is an image that is copied to a separate hard drive and is an exact copy of your primary hard drive at the moment the image was created. All files, folders, operating system, personal settings, etc are imaged.

http://www.sevenforums.com/tutorials/663-backup-complete-computer-create-image-backup.html
 

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A Restore Point can recover from something like a bad value in the registry but it doesn't protect you from stuff like the MBR or partition being corrupted or virus infection. I do ERUNT for quick Registry save, Restore Points, and image backup to external drives. If there's a problem then you can use the smallest fix that can resolve the issue.
 

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An image backup is always preferable to System Restore which as has been said previously is of use in limited situations.
 

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