Version 10 which I have, apparently cannot cope with Vista but otherwise just as you hoped.
A backup of the OS drive (C:) can be stored out of the way to a non-involved drive or partition and provided the new HD has at least as much space as the original, Restore will overwite everything on the new drive so that it can now carry on as the primary drive.
You can save masses of data the same way. It doesn't suit me except perhaps for stuff I may never need again.
You can find and rescue the lot or even single files, but I prefer copy and paste from an isolated archive for my almost forgotten data.