G0ddard, thank you for explaining all this.
To see if I understand it right -- MS Windows Backup and Restore will back up & restore your data, but can not be used for restoring Windows itself. Acronis can backup and recover Windows as well as data but only if you bought the Universal Restore option. However, even after using the Universal Restore option to restore MS software, you will still have to re-activate Windows and MS Office if you have it.
I'm with you, RichardK, I bet few Windows users really understand this. I certainly didn't. Thank you G0ddard.