I believe it is possible. I tell you what I did and maybe try it. I have 2 drives C and D. C was making a bad scraping sound but still working normally.
I got Acronis True Image and used it to clone the drive. I removed D and put a new fresh drive in there. I used the clone mode not the image mode to do this. In clone mode the new drive is slowly written with every bit of data from the C drive live in real time. Windows actually closes down before this starts and then reboots but not into Windows. Just after the bios, Acronis runs and starts the cloning process.
I then removed the faulty C drive and put the D drive (new C drive) into the normal C position and put my D audio drive back in. Everything worked flawlessly. I only had to re authorise two plug-ins on my system after doing this. One was Studio One and the other was my Korg Wavestation plug-in. Everything else worked without a hitch and nothing knew the process had taken place and everything just works perfectly now. Only I have a new and larger C drive.
Because this was so good and worked so well I believe it to be a far superior method of doing a total system backup especially if your OS gets messed up due to what ever reason and you have to revert back. I have never found system restore to be that great or reliable. Others seem to get it to work but it has never really worked for me. This works great.