I hooked an external hard drive into the '09 macbook, but when it's in the usb, it has a pop up that says the disk cannot be read, then brings me to disk utility. I have no idea why it wont read the external drive, as it has worked properly before.

I have an external drive with old music files (about 127GB worth) and I was hoping to put them onto my laptop. I hook it into the USB port, and it pops up an error message saying the Disk cannot be read. This is strange, because the drive was hooked up before and worked perfectly fine. It sends me to Disk Utility and says that It must be repaired, but when I click repair, it wants me to back up anything I can (which I cannot at all, none of the files are on right now) and erase it and repair. I have no idead why it's doing this, any help?

I cannot find this 300GB "Backup" in the Finder, only in the Storage info when I check "About This Mac".
You are probably using Time Machine to backup your MacBook Pro, right? Then the additional 300 GB could be local Time Machine snapshots.  Time Machine will write the hourly backups to the free space on your hard disk, if the backup drive is temporarily not connected. You do not see these local backups in the Finder, and MacOS will delete them, when you make a regular backup to Time Machine, or when you need the space for other data.
See Pondini's page for more explanation:   What are Local Snapshots?   http://pondini.org/TM/FAQ.html
I have restarted my computer, but the information remains the same. How do I reclaim the use of the 300GB? Why is it showing up as "Backups" when it used to indicate "Photos"? Are my photos safe on the external drive?
You have tested the library on the external drive, and so your photos are save there.  
The local TimeMachine snapshot probably now contains a backup of the moved library.  Try, if connecting your Time Machine drive will reduce the size of your local Time Machine snapshots.

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