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Created a backup using USB Image Tool 1.6.1.0. Ran the restore and all my folders show up correctly, but under the folder, it shows Base, Descriptor, and Revision files (1 KB each) and not the actual Word document file. What should I do? Any suggestions/help would be greatly appreciated.

I assume you restored a wrong image or saved it elsewhere. A backup/restore does no modification on the file system. It works plainly on the raw binary data.