Windows Home Server (to avoid your initials..) uses
Volume Shadow Copy to back up only the blocks that changed since the last backup. It does not do traditional image backups that I know of.
Bare Metal restores are easy: Boot off the supplied restore CD, it finds the server, you pick the machine to restore, and it does it. It's something like 4 clicks beginning to end. The only gotcha I've found so far is the target HD must be the same size or larger as the original. The restore CD does allow for you to load NIC drivers but I've not had the need so far. And of course if you're restoring to new hardware Windows will probably ask for reactivation.
For file restores, run the console widget, go to Computers & Backup, select the PC the file was on, select View Backups, and take the option to restore individual files. You can go from any backup it has retained and by default (you can change it) that's everything for 90 days.
Backups run as a background task during a time window you specify (midnight to 6AM is the default). It uses WOL so sleeping machines should still get backed up (although WOL isn't working on my wife's wireless laptop right now). Daily backups take just minutes per machine. The initial full backup will vary depending on how much data there is but it seems to still be fast enough to not worry about and it's still a background task. It does only back up one workstation at a time so if for some reason the time window runs out before the backups are done it will resume the next time (or you can do a manual backup).
The backup catalog is on the server & isn't visible as part of the shared folders so end users can't manipulate them directly, which is good. You can use the console widget to modify backup retention so I suppose if one were to be "evil" they could turn off the backups and delete the copies on the server. But the widget is password-protected. And as I've mention folder duplication before as the way Home Server protects against HD crashes w/o RAID, I don't think it actually does duplication of the backup files, which for me is fine since the backups themselves are dupes.