Windows 7 Backups: Getting Back to Vista from the Brink

I need an ironclad contingency plan to back up my data so that I can test Windows 7 Beta.  I only have one computer.  It's a laptop with a relatively modest hard drive, so dual booting is not an option for me.  I am not a developer, but I consider myself more skilled than a non-technical computer user, having dealt with software and hardware issues on my own in the past.  I am familiar with computer backups as far as making them, but I never have had to use one to recover my data.  I am curious to read your thoughts on my Windows 7 backup recovery plan, which is below.
Before installing Windows 7, my plan is to use  the Windows Complete PC Backup and Restore tool to create an image of my hard drive on an external USB hard drive.  After installing Windows 7, I would then back up periodically my files and folders using the Windows backup tool, assuming it is like the one in my Vista Business OS.  These files would be saved on the USB hard drive, too.  If Windows 7 does not work out for me, then I would use the image from the external hard drive in the Windows recovery environment to restore my computer to its state just before the Beta installation.  Then, I would take the periodic file backup from the USB to restore my files (being aware that this would not recover my program-related data).  
I think that this plan ought to work for two reasons.  First, the Windows Complete PC Backup and Restore tool seems pretty reliable, as it is designed to recover even from hardware failures.  The recovery should be straight-forward.  I assume that because I run a machine with an OS hard drive partition rather than a recovery/installation disc, I would access the Windows recovery environment either through F8 or the ThinkVantage button on startup (fortunately, I've never had to recover on my machine).  Then, I would restore my hard drive.  
Second, it appears from the release notes that backup files created in Windows 7 are recoverable in Windows Vista.  To make this happen, the release notes describe a relatively simple work-around that apparently only involves moving a file in the backup folder to a different location.  
What are your thoughts on this contingency plan?  Do I need to reformat my laptop before doing the recovery plan?  Do any other risks of data loss exist beyond those inherent in an ordinary backup plan, like Windows 7 producing some kind of corrupt backup file? Thanks!

I appreciate your advice.  I am aware of the risks involved, such as the Beta expiring in August and the lack of official Microsoft support.  I do use my computer day-in and day-out, but as a student, not as a professional. Still, based on the positive reviews of the Beta that I have read so far, it appears that the Beta generally runs well.  In fact, it is faster than Vista on startup and shutdown, which is one of features I am most interested in.  The Beta also uses power more efficiently.  This is great for me as my battery life has deteriorated over the one-and-half-years that I have used my computer.  Given that all I do is web browse and use MS Office 2007, I would not anticipate any major software conflicts--just a (hopefully) smoother and cooler (I use an X61 tablet) computing experience.
So, I just want to know whether my backup would work.  Then I'll make the decision on whether to go through with the hassle of worrying about restoring my files at some point in the future, either because the Beta doesn't work out or because the Beta has expired.

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