I'm using Windows 7 on my Mac. On the Lion OS I installed Time Machine to keep a backup of my Laptop. Does this backup also cover the Windows partition?
No, Time Machine does not do this. The only reliable way to back up your BootCamp partition is to boot into Windows and run Windows-compatible disk backup software from within Windows, to back up to a separate external hard drive formatted with NTFS.
Winclone has not been updated in a long time and is not a useful solution.