Hey C!
As far as the installed programs are considered, you'll have to re-install them. Games too. But, you can easily save all your (well probably over 99%) data and game saves& some preferences.
Every time I do a reinstall (did well over couple hundred at my old job) I simply copy the user folder. In Win 7 it's in C:\Users\(your username). Copy the whole folder with all the hidden files. This will include the AppData folder that houses over 90% of your application preferences. You would also be advised to copy the "Public" folder under "Users" too (C:\Users\Public), because some of the settings & prefs are stored here.
Now, for restoring this, you simply copy the two folders back after the fresh installation of windows, accepting to overwrite all files & merge all folders and when few files notification that can't be overwritten, just click cancel. Keep in mind that if you use the same username when you do a fresh install as is your current username you can just overwrite the whole folder, but if you've changed the user name, you'll need to turn on the option to show hidden files & folders and then copy the content of the folder to the new one.
C:\Users structure is universal to both 32 & 64 bit OS, so no worries about that.
Now, best practice for backing up files is making double sure you don't loose anything. I did this in my ex company by making a backup image of the whole machine by using a 3rd party software (we used "Acronis Backup & Recovery" boot image & external USB HDD's) and then the procedure I described above. That way, you can install fresh OS and copy the files back, and if anything goes awry you can fully restore your machine to previous state with Acronis.
Now, about the Acronis- There are surely many 3rd pary backup tools, but I loved Acronis boot image and learned to trust it, because it makes a snapshot of the whole machine (all the drivers, programs, settings, files- everything) that if needed is restored to a completely the same state before you did anything to your machine (software wise). This does exclude hardware changes, though. Acronis image can still recover all your files, but if you changed the hardware in the meantime you cannot restore the full image.
I hope I helped. Feel free to contact me if you need any further advice.
Cheers mate!
M.
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