I want to point out to you that you should never save any recovery options to the same hard drive, even if it's to another partition. If the hard drive fails, you loose any chances of recovering.
As for system restore points, you are better off leaving those in their default location.
Get yourself another hard drive and install it as a slave.
Windows 7 action center has an automatic back up feature, click the flag in your system tray and you will see a window pop up click open action center.
Expand the Maintenance tab, look for the word BACK UP AND RESTORE in the left menu click it and choose a schedule and a drive to back up to.
Although you can use DVD disks, the number of disks you'd need out-weighs the option of using another hard drive, because on some computers, it may take as many as 12 DVDs to create the back up, and the back up on those disks becomes old real quick.
Using a slave drive allows Windows back up to perform its task automatically and keeps your back up current.
Just wanted to add, Windows 7's back-up saved me once already when I corrupted my Windows 7 partition a few months ago, I was able to re-install a fresh copy of Windows 7 and then I restored it back to the way it was by using the back-up I had on the other hard drive.
Edited by MrBruce1959, 07 September 2010 - 10:27 AM.