I've read that you shouldn't use your Admin Account - Why?

Why is that?
Also, when my wife and I first got our Mac Pro we used my name to fill out the start up info. What we didn't know was that my name would now be the computer's and home folder name. I managed to change the name of the hard drive/computer (so now it says 'mike & jen') but the home folder is still my name. Bothers me a little because it's not just mine...it's both of ours. I know that sounds silly.
If we made a new account would the home folder name change too? Any why bother with another acocunt? Why not just use the admin?

If your computer is connected to the Internet, it's pretty important not to be logged in with administrative privileges. A lot of security vulnerabilities in software boil down to an attacker being able to run software on your computer without your consent. Here are a couple of excerpts from a description of a security update for Quicktime (I've added the bold):
Impact: Viewing a maliciously-crafted JPEG image may result in an application crash or *arbitrary code execution*
Impact: Viewing a maliciously-crafted QuickTime movie may result in an application crash or *arbitrary code execution*
Impact: Viewing a maliciously-crafted FlashPix image may result in an application crash or *arbitrary code execution*
Often these sorts of security problems rely on the fact that a lot of users are logged in with administrative privileges. So if you're logged in as administrator and running Quicktime, and you browse to a hacked web site that's hosting a malicious Quicktime movie, and you haven't yet installed the latest security update for Quicktime... next thing you know, your Mac is running "arbitrary code" with administrative privileges.
Logging into a non-administrative account doesn't prevent you from browsing to a hacked web site (and big-time, mainstream websites do get hacked), but if the malicious Quicktime movie isn't able to run its arbitrary code with administrative privileges, it will have a much harder time installing nasty things on your computer.

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