Taylorm, I've run Ghost just enough to be dangerous, but in order to make an image of your drive, you're either going to need a second hard drive (or partition on your current drive) or a writeable device such as a CD-R or CD-RW drive. W/ Ghost you make an image of the drive, then place that image in another location (second partition, second drive, removable large capacity drive, etc), format the original drive, and ghost the image back to that original drive.
Ghost will also let you copy a drive (single or multiple partition) to another hard drive, if for example you want to move to a larger hard drive. During my next format/reinstall of Win98 I plan to install the basics of Win98, patch it, get my drivers all loaded, then burn an image of the C: drive to a CD-R. Then the next time I go through that process I only need to image the hard drive from the CD-R disc.