Acronis cloning limitations?

Is it possible to clone from a 1 TB (seagate) to a 500 GB WD5000AAKS-55YGA0 (caviar blue) ?  the total used space in the source drive is approximately 350 GB.  If this is not an option, is there a work around? will a system back up work just as well?  so that I may boot up windows 7 from the WD destination disk?

Thanks

It should work. In the list of drives to restore the data to they are coloured something like blue means it can recover to the drive and red means it can’t. All available drives show in a list.

I just used to the software recently on a new 500gb Blue Sata3, but the restore failed cause the brand new drive had errors on it. But on my computer all the drives that were not able to accept the backup were listed in a red colour.