When using True Image does the registry and services also get backed up...

AFIK, yes.  A full backup is a drive image.  The Clone utility creates a duplicate drive that is immediately useable and bootable.  Backup requires restoration to be useful - cloning does not.

Does that mean i should be backing up the HDD rather than performing a clone operation.Just curious has any tested this.

I suppose it depends on your objective.  I don't do backup/restore.  All my systems have two HDDs - only one is ON.  The other is in reserve ready to use.  I turn them on and off in mobile racks.  That way I can run them one week on, one week off.  There is always a good drive to revert to in case of any failure.

I used to do backups when tape drives were "in."  But - that is such a slow and cumbersome process.  So, I started cloning with mobile racks. 

Some offices and commercial networks require backup of data frequently.  That is a different objective. I see it as dependent on your objective.

What i am basically looking out for is a back up all my HDD along with my registry and services running.Some of the applications that i run need to have a few services running.So was trying to confirm if the software does the same.

Well, the answer is 'yes.'  It will be as of the date and time of the backup and require restoration to be useful.

so i take that to be a yes..thanks for your inputs buddy...

Also wanted to check if the above process works fine for a server type machine.(Windows 2003)