Snipped story to make it shorter, but leave a trace back for reference.
I can tell you that, while I don't have a lot of experience with Windows 7 backup, that's definitely not normal Windows behavior. Why were there separate partitions for Documents/Settings and the OS? I think Windows 7 is capable of automatically creating a partition for a backup (and it's not a backup if it's on the same disk), but TimeMachine is capable of the same thing if you manually create the partition, I bet. I've never tried it, so I don't really know.