Best approach for Time Machine / Entourage / FileVault / sparse bundle disk

I am looking to set up Time Machine belatedly on my G5 to provide hassle-free backup for me and my family. I use Entourage. I also want to provide a small amount of encrypted storage. I’ve scoured the obvious places which have plenty of ideas, but nothing which pulls it all together.
My thoughts so far have been:
1. Time Machine doesn’t work well with Entourage as Entourage uses a monolithic single file (which in my case is several GB big) – backing this up every hour will bring my machine to its knees, fill up the backup disk and will possibly give a corrupt backup as the file could be accessed by Entourage or the MS daemon process during the backup.
2. I thought of turning FileVault on which would automatically contain the Entourage file. This would mean:
a) the sparse bundle format (8 MB bands) of FileVault would limit the volume of changed Entourage data which would be backed up each time by Time Machine and
b) the backup would only occur during logout (which is fine with me) when Entourage and the MS daemon are not running so that the backup won’t be corrupt.
3. However I am not hearing good things about the reliability of FileVault (comments?) and don’t want all the data in my Home folders lost – I don’t need that much encryption anyway.
4. So I thought about setting up a couple of encrypted disk images made of sparse bundles – one for the Entourage data (symbolically linked to the right place for Entourage to pick the folder up) and the other for the other small number of files I need encrypted. This could be auto-mounted at login.
5. However I think that using disk images rather than FileVault loses the automatic backup by Time Machine at logout. Maybe there is a way to get Time Machine to automatically backup these disk images during logout.
6. Perhaps there is another way to get the disk images backed up at logout other than using Time Machine.
So my questions are:
A. What is the best overall approach to providing a low-maintenance reliable backup which deals appropriately with Entourage and provides a small amount of encrypted space?
B. Can Time Machine be made to backup disk images other than FileVault disk images at logout? (for example is there a particular location / filename format for FileVault images which I could emulate with the other disk images to fool Time Machine into backing them up?)
C. When Time Machine runs at logout, have MS Entourage and the daemon process already been shut down and the disks unmounted, to prevent corruption?
D. Is there another way of backing up the sparse image disks at logout?
C. Is this all going to get magically fixed in Snow Leopard?
D. Will MS come up with a sensible storage format for Entourage?
Any thoughts greatly appreciated.

I don't know if there is a complete solution, but here are some things you could consider.
1. TM does not run automatically at logout unless FileVault is enabled.
2. You can change the backup period using third-party utilities like TimeMachineEditor - VersionTracker or MacUpdate.
3. You can exclude the Microsoft User Data folder from the TM backup and back it up separately using third-party backup software.
4. You can use third-party backup software instead of TM, such as:
1. Retrospect Desktop (Commercial - not yet universal binary)
2. Synchronize! Pro X (Commercial)
3. Synk (Backup, Standard, or Pro)
4. Deja Vu (Shareware)
5. Carbon Copy Cloner (Donationware)
6. SuperDuper! (Commercial)
7. Intego Personal Backup (Commercial)
8. Data Backup (Commercial)
9. SilverKeeper 2.0 (Freeware)
10. Tri-Backup (Commercial)
11. Apple Backup (requires a .Mac account with Apple both to get the software and to use it.)
Apple's Backup is a full backup tool capable of backing up across multiple media such as CD/DVD. However, it cannot create bootable backups. It is primarily an "archiving" utility.
Visit The XLab FAQs and read the FAQ on backup and restore. Also read How to Back Up and Restore Your Files.
Third-party backup utilities can run backups on schedules you set up. Thus, you can schedule your backups to occur at a time when you do not use the machine such as early in the AM for example.

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