Fromat External WD hard drive versus encrypting it

I bought new WD external hard drive ( written on it formatted NTFS, requires formatting for Mac OS X. As soon as I connected it to my mac , I got the window asking of I would like to install time machine in which I was interested I clicked ok  with encrypting option, I started the process.  However I realised need to use the hard drive with my mac book pro and my pc , so 
1- can the time machine be used on PC and mac ( as I transfer work between both computers often)?
2- Should I (2.1) format first or (2.2) I can install time machine and encryption and then format?
3- if option 2.1 above does that mean when I will format , it will erase the setting for time machine and can I re-set it once formatted ExFat or Fat32?
3- if I should format  which one I should choose Fat 32 or ExFat?
4- what the repartition part of the process useful for? when I clicked the sign + it devised the disk in to two section .... does that mean  it will format only half of the disk?
I would be grateful if you can answer my questions

Time Machine will only work on a volume formatted Mac OS Extended (Journaled).  If you want to use that WD HDD on a PC as well, you will have to partition it and format one partition for Time Machine and the the other with a common format for Mac and a PC.
Fat32 has a 4 GB file size restriction.  ExFAT does not.
Use these instructions to partition the HDD:
osxdaily.com/2011/04/26/partition-hard-drive-mac-os-x/
I am of the opinion that Time machine should have a HDD dedicated solely to it and you should have a separate HDD set up to work on the Mac and a PC.  Take into consideration where and how you will back up the data on the PC//Mac volume/drive.
Ciao.

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