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I prefer to keep System Restore on with a small amount of space. It has saved me a few times in the past. But to each his own.

System Restore doesn't replace a true backup, so you still need to...

It depends on how far back you want to go. The less space you have, the fewer restore points you can save.

That being said, 134GB is overkill. You could do maybe 5-10% of the drive. If that's not...