I have finally made the decision after a year and a half of fighting with Smartware, to remove it completely from my system so that I can run sleepmode in Windows 7 64bit. I will just do a weekly backup and image using Windows 7 backup software and manually copy my library of my documents, photos, music, etc. for recovering individual bits of data vs complete system re-image/restoration. I have set MS Outlook to automatically backup the .pst files into my documents on the c drive so it is pretty simple to back them up now manually to the external WD Drive.
The excessive CPU hits on 1.6.4 smartware and lost functionality of automatic scheduled windows sleepmode far out way the desire to have “continuous” backup with smartware. I am happy to report that my system now uses about one percent of CPU when idle versus 5-25 percent of CPU with 1.6.4 running constantly in the background while the system is doing nothing. It is also nice to save on the power bill again by being able to run sleepmode in Window 7 64bit. With a 1000 watt power supply in a a gaming PC, I figure the power savings in one year alone will be able to pay for a new external drive if my dual WD ext 1TB drives ever fail.