I have an Acer Aspire One, only the 8GB SSD model, (expanded with a 4GB SDHC card), not a HDD like you but maybe my solution might give you some ideas.
For drive image backup/restoration I use
Partimage Is Not Ghost, (which is akin to the original Norton Ghost restore/backup bootable floppy), on a bootable 2GB Flash Drive, using compression I can store a compressed image of
both my current XP Pro+SP3 install
and a compressed image of the original Linpus Lite installation.
The XP Pro+SP3 installation is highly nlite'ned and with compression the image comes in at around 400MB, less than the Linpus image at ~600MB. This still leaves with over 600MB free on a 2GB Flash Drive for any subsequent backups.
It can also backup to a network share via SAMBA, so you can save/restore from another computer and don't need to carry any more than a basic restoration image if it dies while you're on the road.
Regarding using FD-ISR or similar, I suggest having a look at either Microsoft's Enhanced Write Filter or File Based Write Filter as I mentioned over
here.
Using EWF you could redirect
all writes to the System drive, (C:), to a directory on the data partition or create a separate partition specifically for it. The next time you reboot the System partition will come up sans any changes you made last time -
unless you commit those changes to the drive.
As I said above, might not be suitable for what you specifically want to do but it comes in at the right price - free.