How to Create a System Image in Windows 7
In the left pane, click Create a System Image.
Windows Backup begins scanning your computer for backup devices. You can create a system image on an NTFS-formatted hard disk (but not the same hard disk that you are creating the image from), on one or more discs, or to a network location. If you create a system image in a network location, Windows Backup overwrites older system images and keeps only the most recent image.