That is precisely what I do using TeraByte Image for DOS. I prefer to image the C: drive from DOS as it is not active and you get an error free image.
When all is installed and tuned and all personal settings, passwords, and software is installed and the system FULLY updated, I then check everything very thoroughly to ensure that it is virus and Trojan free, make three copies of the registry in that condition and then make TWO images.
One is burned to CDRs and the other is made to drive E: so that it there are any major updates or other changes I can keep a running copy until, about every four months I make another set of CDs.
I find that I can restore the C: drive after formatting from the E: drive using the TeraByte Image for DOS bootdiskette, just that it is safer to have a reliable image on CDRs and OFF the HDD in case of total drive failure.
Sure enough, and only two weeks ago, heavy clicking followed by ... nothing. The 60Gb Quantum Fireballp (2Mb drive-cache) had failed totally.
So I put in this 80Gb Maxtor Diamondmax with an 8Mb disk-cache, fdisked, formatted the four drives and re-installed the full install of the C: drive with no problem at all.
As yet the old drive proves to be unrecoverable so it'll need to go to a professional with special equipment to run the platters on a rig.
As this is a Packard-Bell OEM computer, or rather was, I now don't have to use their TATTOO or use the hidden sector, so I get the full drive size.
The downside is that I now cannot use the original Smart-Restore Master CDs unless I wipe the drive, kill the boot sector, and TATTOO the drive to the original Packard-Bell specification, then fdisk, partition and format the four drives all over again.