I think we can handle this with Recovery scenario Manager.
Regression tests are the tests which need to be verified everytime we get a new build. Even if a new functionality is added we can do the changes to the tests in the function library so that we need not do changes to all the scripts whenever a change occur.
Please correct me if anything wrong as i am not sure about this.
How will you do Regression test in QTP and how we will come to know that new functionality's effect and the changes are correct?