If I do a clean installing of Windows 7 with only one partition - the C: partition; and I install the Rescue and Recovery tool, when I make a backup of the system by using the Rescue and Recovery then the backup file will be stored in the partition C:. So when I restore the system with the backup file later, will this work?
Backups and restores will still work. The risk is if something happens to your hard drive, then you would lose the backups as well. For this reason it's a much better idea to store your backups on an external device such as USB hard drive or network.