Yes, if you boot the ShadowProtect Desktop/Server Edition Recovery Environment CD you can both backup and restore within the booted recovery environment. There is another flavor of ShadowProtect called IT Edition which is a non-installed product (runs purely off of a CD and installs nothing) which can actually backup your live running system (you don't even have to boot into the recovery environment, or install anything). Of course, if you boot the IT Edition CD you can also backup and restore withing the booted CD environment. IT Edition isn't really for the home/end user crowd. It's licensed on a "per technician" basis and is intended for enterprise IT administrators - the technician can use their IT Edition license on as many machines as they like as long as they're the only tech that uses their copy.