Answer Best answer as chosen by user richard19223 TM restores are typically reliable.
I've done a fair number of Time Machine restores in my day, and have had little to no difficulty in getting everything back. By it's very nature, TM will backup your applications, user folder and data without a hitch. My advise is to use a backup drive AT LEAST twice the size of the drive you are making the backup from. That will allow for not only day-to-day backups but also for backups of those files that TM can't look inside to. Specifically iPhoto libraries, Entourage and Outlook mail databases, VM Fusion and Parallel virtual files as well. Probably other files as well I'm not familiar with.
What Time Machine WON'T back up is a Boot Camp partition. It will also ignore external hard drives unless you tell it otherwise. That will of course mandate a larger backup drive.
Using TM is fairly straight forward. Make sure your TM backup drive is formatted for GUID partition. You would do this in Disk Utility. Mountain Lion gets cranky if a TM backup drive uses the older formatting scheme for PowerPC Macs, and won't work at all with a Windows/DOS formatted drive.
When you go to restore from your TM drive using Mountain Lion, let it walk you through the first-time setup, and when it gets to the screen that asks if you want to restore from another disk, select it and then point to your TM backup drive. After it calculates how much data is going to be moved, click Continue and let it do its thing.
Hope this helps some.
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