I need an opinion, now that I have a 500GB TC...I hope someone reads this

So originally I asked for just a plain ole external hard drive for Christmas for my 3 year old PowerBook G4 laptop. Then I started doing some research, cuz I kinda realized I wanted something wireless so that I didn't have to go through the hassle of unplugging it every time I needed to take my laptop away from my house. Currently this is how I run things....I have lots of music and that's what's taking up the majority of my internal HD space. I do a little freelance design and am also a photographer. I have, for the time being, a small external hard drive that holds my files (design work, photos, etc). I have very little files that I update on my internal HD (like I said, it's mainly music). I have an iPod that most of the music on my laptop is on (I don't keep it synced, honestly that's not really a worry for me). So when I started looking into my options, I read about the Time Capsule. Of course the opinions on the Apple Store site were mixed, but it still sounded good, so I asked for one and got it. I like that it worked wirelessly, worked with Time Machine (which has gone unused since I upgraded to Leopard last Christmas), and according to Apple I could also use it as an external HD. Now that I am reading the TC forum (after having initial problems with the TC, which required the TC to be exchanged for a new one on Monday) I really do not know what to do with it. I am reading that if you do use it as both a backup system AND external HD it gets a little "tempermental." Some people have lost all backups and files due to inexplicable disc errors and such. I have read that you can hook up an external HD through USB to the TC and access it wirelessly and put your iTunes library and music on that external HD, but then it won't be backed up. Like I said at this time, I work on files by getting the files I work on off of my small external (which is filing up fast) work on them, and then save them back on the external....Ok now I'm rambling a bit...My question is
Should I just use the TC as an external HD or use it to back up and get another external HD to connect to that....Then I can't attach a printer to the TC via USB....AHHHH too many options...What would you do??

Just thought I'd throw my thoughts into the mix, although essentially I agree with VA2020. I have similar requirements for my set up: I have a laptop, which I keep my current working files on and therefore want to have backed up regularly (by Time Machine). However, I also want to be able to play my iTunes library at home, from wherever I happen to be. So I have a Time Capsule for backing up, with an external 500GB HDD (connected to that via USB) which I use as a music and image server. I also got a wireless combo-printer to take that issue out of the equation; and to make sure my music/images are backed up, I actually use the free Back Up software you get with a MobileMe account, scheduled to back up at suitable intervals via firewire to yet another 500GB HDD (these back ups are weekly/monthly, so it's not a big deal to hook up the laptop just at those times).
I am also planning to use SuperDuper to backup the entire laptop system (I leave out apps, system files etc from the TM back ups so it's quicker) so I can restore in case of a total OS failure. This might seem like overkill, but this way I would have everything backed up, but with the ability to pick and choose what I want to recover. And although it seems complicated, once set up and scheduled, it all works with very little thought on my part. I admit TC has many glitches, but I still love the wireless backup.

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