It can manage files, edit Windows Registry, uninstall previously installed Windows updates, scan system for malware and restore deleted files.
Windows RE is installed along with Windows Vista and later, and may be booted from hard disks, optical media (such as an operating system installation disc) and PXE (e.g. Microsoft Diagnostics and Recovery Toolset (Da RT), sold as a part of Microsoft Desktop Optimization Pack, is yet another toolset based on Windows PE that performs diagnostic and recovery on an offline copy of Windows.
Windows 7 includes a vast library of drivers for commonly used devices.
Unless you have some exotic or very old hardware, chances are that Windows 7 will support it.
It's possible to modify the default startup disc to have access to a few plug-ins like Windows Management Instrumentation, Windows Scripting Host, additional drivers and other 32-bit applications (or 64-bit applications for 64-bit versions).
Other new features include the capability for a rewritable RAM disk since Win PE version 1.x only has a recordable RAM disk.