I answered my own question on the "shrink" feature: No, it is not a KB article yet.
Here is the only KB article out on the feature: HERE
SITUATION:
When attempting to restore an image file to a new disk or partition, you receive a message stating that "The selected free space is not large enough for the backup image."
SOLUTION:
The current version of ShadowProtect does not support restoring images to partitions that are smaller than the one they came from (even though the data itself would fit). This is a feature we plan to include in a future release.
The best work-around is to use a partition editing tool, such as Paragon Partition Manager, to shrink the original partition prior to creating the backup, so that the restore to the smaller partition will work.