Do I need to buy more storage for backup?

Should I do more? Here is what I have so far for my iMac OS 10.5.8:
1. 2 GB internal hard drive storage
2. 2 terabyte external hard drive (Seagate - being shipped by Anazon.com)
3. Time Machine
4. 1 terabyte Time Capsule, wireless automatic continuous backup
Today at Best Buy I almost bought a 2 terabyte small ext. hard drive only/just for videos, pictures, and music. When I saw that it was a USB connection and not Firewire I decided not to buy it. But do I need to have that extra backup?
I was told that the external hard drive would be better than CD or DVD storage because with those two, you can only add more items five times, no more, whereas with an external small ”passport“ hard drive, I would not be similarly restricted.
I welcome all opinions
~L

do we speak of backup or archive, Lorna?
Timemachine/TM is a clever system to get back the version before the version before the actual version of a project..
TM will, when drive is 'full', start erasing oldest 'versions' ...
but it doesn't do archiving.
and here it get's philosophically..
books from the 13th century are still existing and are readable (if you 'speak' Latin...)
or movies from the 1920ies are 'readable' (= last week, the 'original' version of Metropolis had its premiere at the Berlin Film Festival) ..
ANY document, starting from the mid20th cent will be lost soon.. read the phrase 'digital dark ages'.. all your .docs, music, fotos, videos are 'digital' .. on 'media'. stumbling into probs with long-time-storage and compatibility.. anyone remembering 5¼" Floppys? beta video cassettes? Sonys MD music-disks?
a usb2-1.5TB drive is good for archiving, why not?
every once-in-a-while (6 months?) you manually drag in Finder the content of your backup-drive onto your archive drive. or, in Finder, you copy the 'originals' from any iT/iP/iM-Lib onto your archive drive.. for sure, you can backup this archive... and every 5-8 years, don't forget to upgrade and switch from SCSII to firewire to usb3 to eSata to ... and convert from DOS to fat to hfs to ntfs to ...
and speaking of 'backup + archiving' plus 'from Hawaii' - keep the archive.drive in a dry place ..
(sorry, my corny humor)....

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