What size HDD do you need for Time Machine is it the size of iMac HDD?

Ok, looking to buy iMac, to use Time machie do you need the same size HDD that is in your iMac? ie Im looking at getting the 250Gb iMac, so do I need a 250Gb external HDD to use time machine?
I plan to also get a NAS drive so can time machine be used with this or do you need n external HDD attached direct to the iMac all the time to use time machine?
cheers

the loc-man wrote:
so you can pick and choose what backup? eg Music, Pics, Docs, emails etc?
Yes you can choose everything or just parts.
does it compress stuff though to utilize the space better?
No, look here for more detail. http://www.apple.com/macosx/features/timemachine.html
its not like a ghost image?
Not that I know of.
so if the iMac had to be re-installed could you then reconnect the Time machine HDD and restore everything?
You could insert the Leopard disk and instead of doing a new install you could restore directly from the Time Machine Back Up. This depends on if you do a full back up or just parts of your system. Either way it is easy to recover your system using Time Machine.
Also if the external HDD is used for time machine is that all it can be used for? or can you also use it on other computers both Mac and PC?
It is best if you use Time Machine on a partition by itself. Then the other partition can be used for normal stuff.

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