Need help to use paragon system backup 10 properly

Hi friend first of all i would like to make it clear that i am not an expert and previously i have never backed up my data at all. yesterday i noticed that my dvd drive is not working it does not burn or read disk. So it is impossible for me to use my windows 7 disk if i ever need to reinstall OS. So i am now considering to make a clone of HDD so that i can use it to boot in case my OS crashed. A friend of mine give me paragon system backup 2010 special edition (he got the licance from a giveway i guess). I am also considering to buy a 1 TB external HDD. My existing internal HDD is 160 GB with 5 partition. The partition with the OS is 40 GB.

Now i would like to know about the following points:

1. Do i need to format the 1 TB HDD with same no of partition so the i can make a clone of the 160 GB so that i will boot when needed.

2. After making the clone will i be able to incrementally back up other data auto matically in the HDD

3. If i make change in say drive E like modifying a old file or add some new file, will those data be backed up automatically or i have to copy/paste those file to the external to back them up.

4. Theoritically speaking if paragon detect changes in the file and back them up automatically then my back up folder will be always 160 GB, so i can use the 1 TB external drive to store files which i dont want to keep in my laptop.


sorry for asking those basic question but please i just want to understand how this thing works before actually doing it.

With regards
Gautam