Dilemma with Backing Up

I currently have a 1TB HITACHI external hard drive that contains essential files and back ups of 3 PCs in my house. I have a MacBook Pro and I'm looking to back it up. I would like to use the Time Capsule utility, but I am told this will erase all data already on it. Apparently an option is to partition the external hard drive, however I have not yet found a way to do this without, again, losing all the valuable data on the external HD already.
Is there a way to just drag and drop the entirety of my Macbook's files into the external drive. I tried to do so, but it stopped after it needed my admin password.
Any help is appreciated.

Cakes94 wrote:
If the best option is to get a new external hard drive, are there any particular models that work well with Macbook Pros?
I don't know of specific models. Most of my external drives are from LaCie, and I'm reasonably happy with them. But I have several WD and Seagate drives I put myself in no-name FW or combo enclosures, and -- knock wood -- they've worked fine so far. I prefer FW over USB (you only have 2 USB ports anyway), and it's better if the drive has its own power supply, rather than rely on bus power.
How does one go about setting up a back-up system via LAN?
You can set up a desktop machine as a backup server, as, for instance, described here
<http://www.macworld.com/article/155589/2010/11/old_mac_backup_server.html>
or get a NAS device, a few of which are reviewed here
<http://compnetworking.about.com/od/homenetworking/tp/nas-storage-drives.htm>
A decent guide to backups is Joe Kissell's "Take Control of Backing Up Your Mac"
<http://www.takecontrolbooks.com/backing-up>
which is (relatively) inexpensive in electronic format.

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