1, you could use Paragon to put an image of your C: partition in your D: partition but what would happen if the Hard Disc failed ? You would lose the backup image as well ! It would be better to use another Hard Disc either in an external enclosure or in the PC to store the image.
2, read the Paragon help files and it explains about making a Recovery Disc to use when restoring the backup image.
3, you would have to make another image either as well as or instead of the previous image.
4, as in answer no 2, help files and Recovery Disc.
Hope this is helpfull.