First Attempt at Machine Backup

I decided to take the plunge last night and try my first backup, without reading any documentation. I have a Lenovo S10 that I've used primarily for note-taking and general web surfing (and a little World of Warcraft, even). I don't store any important data on it, and I have no reservations about wiping the hard drive, so if the backup isn't successful, I haven't lost anything vital. So the nettop was my guinea pig.

First I created a user account for myself on the server, which is really a Remote Connection task. I should have postponed this as it created some confusion, as you'll see.

My next step was to install the Windows Connector on the nettop. This is client software that automagically connects your client PC to the WHS. The WHS blog "We Got Served" has instructions (and screenshots!) on how to install the Connector (hint: it's really easy).

Installation was relatively quick, but it required the main partition on the nettop to be converted from FAT32 to NTFS. Instructions were included in the WHS documentation - some command prompt work, one reboot and 40 minutes later, the backup commenced and completed successfully. However, a dialog box popped up, saying that my passwords didn't match between my nettop and the server - I assume this refers to my "Tyler" administrator account on my nettop, but I'm left with some questions:

1. Is the password from the nettop syncing to the backup on the server, or the Remote Connection account?
   
2. What happens if I have other accounts on other computers named "Tyler"? Would a backup from another computer overwrite the nettop "Tyler" backup?
3. Are backups account-based? For example, my fiancee also has administrator account on the nettop - did that get backed up as well, or just the "Tyler" account?

I'm currently doubting that the backups are complete "images" of the machine, for the following reasons:

1. I'm using several gigs of harddrive space on the nettop, yet the backup was only about 650 megs.
2. The nettop has 2 partitions - how can I tell if both partitions were backed up?
3. I did the backup over WiFi via a 802.11g connection, yet it went surprisingly quick. Related to point 1, it didn't seem like the whole physical drive was backed up.

Hopefully the WHS help documentation can fill me in on these points. I hope to report back tomorrow with some answers.