I have used Ghost 9.0 on XP Home. (But you can use v2003 IF you have 128MB Ram.) The Question IS, can you convert a FAT32 Image to storage on NTFS, and then, back to FAT32.
YOUR Questions:
1a) Clones: plug right in place of the other drive, then repairs can be made to the Original "C:" drive while you're booting from the "cloned" - "C:" drive. [Bad "C:" would be put in as "D:" drive, Physically.]
1b) Image: requires booting from the Ghost CD; the other "Image" put into another CD-drive, or attached to the Motherboard via Internal, or External means.
2a)Clone: is ready. You can swap drives and go on.
2b)Image: can be stored on the same drive, or CD's. Storing on the same drive makes access to any file immediate. Nice for "accidents". [CD's, not so convenient, but doesn't take up any HDD space.]
3)With Ghost? What CD do you want to make "Bootable"? The recovery environment on the Ghost CD is bootable/required to copy any "images" back to your drive, and the "clone" doesn't require anything else to be bootable.

Finally, You have to know how to change your boot device order if you want to boot with the external drive (the "clone") as "C:".
Best of luck!