External HD backup

I am trying to be a good computee and use an external hard drive to backup my IMac G5. There are two users; each of us has our own account and we have a folder of shared documents. We’ll be using the hard drive as backup for both accounts and all data.
I am presently planning to acquire an Iomega Silver Series 320GB hard drive. I feel overwhelmed by issues and questions regarding the best way to backup. Assuming my choice of HD does not already send up red flags, can anyone help me with:
1. The HD comes with EMC Retrospect software. I gather from the EMC website, this can be set up to do automatic or regular backups. Would this be the full backup plus incremental backups that people talk about? What would I need to do to “manage” it?
2. Would this backup all applications and start-up as well as data?
3. Consumer Reports suggests ChronoSync software. Would this only backup data?
4. A salesman suggested that I just drag my home folder to the HD, keep previous and latest, delete earliest each time (i.e., drag each of our home folders and the shared folder?) This would also only backup data, right?
5. My IMac G5 currently has 26.3GB in use (total capacity 152GB). Are any of these options going to be much more time consuming than others?
6. Obviously it is most critical to back up data. But isn’t it desirable to backup apps also? Does it add considerably to backup time?
7. Is it worth purchasing an extra cable for Firewire 400 rather than USB 2.0?
8. The Iomega comes formatted for universal use. The online manual says I can get faster operation by reformatting for Apple. Will the difference in speed be significant? Would leaving it as is mean I could retrieve my data on a Windows machine later more easily?
9. I would like to archive some of my photos (i.e., get some of them off the internal HD, once they are on a CD). Can I partition the external HD and use one section for backup and another for archives? Do I need to partition the HD to do this?
10. When I update software on my internal HD, I always Repair disk permissions—and often there are some to repair. Will I need to Repair disk permissions on the external HD?
11. The external HD won’t last forever either… How do I determine when I need to replace it?
Thanks for your help!

Did I hear someone mention my name?
Virg is right on all counts, your number 1,2 and 6. will be taken care of by SuperDuper!
As far as 8 is concerned, yes, if you don't use Windows for anything, by all means, use Disk Utility to format it as Mac OS Extended (journaled)
9. When you format the external, you can certainly partition it, use one for your data and as a clone (which as Virg said, can only be done with a firewire connection) and use the other for your photos. You do not need to do anything to your internal hard drive.
10. SuperDuper! can be programmed to repair permissions on both drives automatically.
11. You won't know till it starts giving you trouble, although you can look to see if it's verified in Disk Utility when you highlight it.

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