What is the best way to have complete security? Should I set up a VPN? How is that done and information used, if this is a method of further security. Thanks

Can anyone help me with applying settings for ultimate security and privacy. I like to keep the computer free from clutter and info, cookies, cache etc... Are  there any applications or support I can add to the already wonderful OS. Should I set up a VPN? Any advise or knowledge would be appreciated. Thank you in advance.

I have read several articles in which it says "the rule of three" meaning three backups , is this for real?
I don't think you understood the context. It was meant to say that your Time Machine backup drive should be three times the capacity as the drive(s) backed up. If your drive were 100 GBs, then the backup drive for Time Machine should be 300 GBs. In fact it should be at least twice the capacity. More being better.
I also thought about the cloning aspect but have never used it before.
Cloned backups differ from Time Machine in that they are fully bootable (which is not the case for Time Machine) and only require a backup drive to be the same size as the drive backed up. Incremental backups simply replace old files with new copies and new files. This requires using third-party backup utilities such as:
Some Suggested Backup Software
  1. Carbon Copy Cloner
  2. Data Backup
  3. Deja Vu
  4. SuperDuper!
  5. Synk Pro
  6. Tri-Backup
Others may be found at VersionTracker or MacUpdate.
Visit The XLab FAQs and read the FAQ on backup and restore.  Also read How to Back Up and Restore Your Files.
I would also like to use SL as a second OS with this computer , how would I do this without using my internal hd and adding partitions to it as I understand that SL is the only OS that you can boot externally from the new OS's that Apple has used.(Lion/ML)
Technically, this is a different topic and should have been posted separately.
Any version of OS X may be installed and booted from an external drive. But, iMacs made after 2009 cannot be started from the retail copy of Snow Leopard. Snow Leopard must be updated to 10.6.8 to boot any of the extant iMacs produced after 2009. This does not apply to the yet released new iMac which will only run Mountain Lion.

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