Should I use Time Machine?

I have a new Western Digital My Passport Essential 320GB external hard drive. I also have an old PowerPC iBook G3, with a 40GB hard drive and a dead logic board. I can still access the iBook's HD by hooking it up to my current MacBook and starting it up in Target Disk mode. My current MacBook has a 120GB hard drive, which is getting full.
This is the first time I've ever used external storage. What I would like to do is:
a) copy the contents of the iBook's HD to the external HD;
b) back up the contents of the MacBook's HD;
c) free up some space on the MacBook's HD.
My questions:
1. Do I need to format the external drive before doing anything? If so, am I right in thinking that I should do this in Disk Utility > Erase, and choose 'Mac OS X Extended (Journaled)'?
2. If I do this, do I need to worry about the files that were already on the drive when it arrived from the manufacturer? (I might keep the User Guide pdf, but everything else seems to be .exe files, or files for which there is no default application specified to open them.)
3. Do I need to create a partition on the external HD for the contents of the old iBook HD?
4. Will Time Machine work on a partitioned external HD?
5. Should I use Time Machine to back up the contents of my MacBook, or do it manually? The things that I'm most concerned to back up are my photographs. However, these are also the files which take up the most room on my MacBook HD (I shoot in RAW - lots of 10MB+ files), so are the obvious candidates for files to keep on the external HD in order to free up space on the MacBook. If I back up using TM, then erase some photos from the MacBook hard drive, will TM then erase them from the external hard drive as well - either immediately or when the external hard drive fills up - or will they be safe forever? Sorry, I'm not entirely clear how TM actually works...
I'm a real novice here. Advice on any or all of the above will be much appreciated.
Michael

GoonInChief wrote:
My questions:
1. Do I need to format the external drive before doing anything? If so, am I right in thinking that I should do this in Disk Utility > Erase, and choose 'Mac OS X Extended (Journaled)'?
If it's not HFS+, it needs to be formatted to HFS+ (Mac OS Extended - Journaled) via Disk Utility. All data will be lost. See Answer 4.
2. If I do this, do I need to worry about the files that were already on the drive when it arrived from the manufacturer? (I might keep the User Guide pdf, but everything else seems to be .exe files, or files for which there is no default application specified to open them.)
If you want to keep the files, copy it to another location.
3. Do I need to create a partition on the external HD for the contents of the old iBook HD?
If you want to.
4. Will Time Machine work on a partitioned external HD?
Yes, but it needs to be formatted HFS+. If you are creating a separate partition, you use a GUID partition map for an Intel iMac (APM for PPC).
5. Should I use Time Machine to back up the contents of my MacBook, or do it manually? The things that I'm most concerned to back up are my photographs. However, these are also the files which take up the most room on my MacBook HD (I shoot in RAW - lots of 10MB+ files), so are the obvious candidates for files to keep on the external HD in order to free up space on the MacBook. If I back up using TM, then erase some photos from the MacBook hard drive, will TM then erase them from the external hard drive as well - either immediately or when the external hard drive fills up - or will they be safe forever? Sorry, I'm not entirely clear how TM actually works...
Absolutely NOT! TM is not for archiving. You delete files are NOT safe forever.

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    The Tragedy that will be, the tragedy that never should be
    Always presume correctly that your data is priceless and takes a very long time to create and often is irreplaceable. Always presume accurately that hard drives are extremely cheap, and you have no excuse not to have multiple redundant copies of your data copied on hard drives and squirreled away several places, lockboxes, safes, fireboxes, offsite and otherwise.
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