You do need a 32GB drive - maybe 64 if your OS installation is monstrous - I would use the 32 for any standard installation.
I do not mean to throw you a bunch of links and disappear; the truth is that these files are pretty well written and have information in them that I might miss if I pieced together the information for you.
Some explanation is in order:
Creating Recovery Discs or Saving a Recovery Image to a USB Flash Drive (Windows 8)
Additonal Information:
HP PCs - Troubleshooting SystemRecovery Problems (Windows8)
In case you can use this or pass it along:
HP PCs - Restoring Files that were Backed Up Using HP Recovery Manager (Windows8)
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For Later:
HP PCs - Backing Up Your Files (Windows8)
and
The standard:
Refresh Your PC to Resolve Problems (Windows 8)
and the
Custom Refresh Image Option
- The nice thing about a Custom Image is that it is “customized” to your installed programs. Most of us tweak and change our computers after we set them up the first time; one of the main changes many of us make is to add our favorite programs. The Custom Refresh Image allows you to keep those programs when you decide to use the Refresh option on your Windows 8 Computer.
How to reinstall Windows 8 without losing your files and programs
Happy Computing!