What is Shadow Copy?

The Shadow Copy feature is an amazing new recovery feature in Vista that is available in the Business, Ultimate and Enterprise editions. Shadow Copy is turned on by default and is a very useful tool when recovering a previous version of a file or folder. Here's an example of how Shadow Copy works:
Say you are editing a file and you accidentally make an error and save the file. With Shadow Copy, all you need to do it right click the file and select "Restore previous versions" from the resulting menu. Since Shadow Copy makes "points in time" snap shots of your files and folders you can easily restore any of the available versions of your file. To restore it, simply browse the available versions of your file, click the version you would like to restore and select "Restore". It will then place that file version automatically back to its original folder. Or, you can drag the selected version of the file to a folder of your choosing.
Since Shadow Copy only creates copies of files that have actually changed, it uses only a minimal amount of disk space.