Dilemma and Challenge

[magnus1492]

A dilemma and challenge: I have a desktop hp h8-1534 Envy that came with OS Win8.0 and was upgraded to 8.1 several years ago…it’s a working unit but has a few hiccups every now and then….I made a Recovery thumb drive when I did the upgrade and would like to know:
(1) if I use the Recovery drive will I lose all my programs, data, files, photos, etc.?
(2) I already did a backup (hiccups included) and want to know if I do the Recovery, can I copy all my backed up “stuff” less the OS back onto my internal HD that I lost doing the Recovery, i.e., if I lost the data from the Recovery?

CHALLENGE:
(3) I downloaded a Windows 8.1 Disc Image (ISO File) 64 Bit from Microsoft onto
my internal HD as I wasn’t given an option to save to external device. I tried to cut/paste the 4.02gb file onto my 8gb thumb drive but keep getting error of not
enough space on the thumb drive…HOW DOES THAT HAPPEN?
(4) Stupid Question: By downloading 8.1, is that inclusive of 8.0 or doesn’t matter?
(5)Anyhow, if I choose to open/install the ISO file, does that also mean all my
“stuff” is wiped out or does it overwrite only the current OS?
(6)If I do #4, do I have to contact hp et.al., about drivers or what?
Any help will be greatly appreciated!