yes, the image includes everything on the disk. if you don't like acronis, i also mentioned norton ghost which is the other well known big one...both acronis and ghost are not free though. if you have a seagate drive, you can use their free disk imaging software, "disk wizard", which is basically acronis true image designed for seagate.
another option is to put a second hard drive in your computer, and enable raid 1 to mirror your hard drive...you will always have an exact copy of your current drive...if your main one fails, just set the back up drive to master, and your good to go.