Time Machine/Partitioning problem

Hi mac forums,

When I first got my Macbook Pro, I used Time Machine to create a backup, and I learned that it can only be backed up on an ext. HD (which makes sense).

So I used my newly bought WD 'My Book' to make a Time Capsule.

Months later...

I went through futile efforts at installing a bootable Snow Leopard on a partition on that 'My Book,' so I decided to re-restore to make an empty HD with new partitions.

But I wanted to keep the Backups.backupdb folder so I copied it to my desktop and erased the original.

Now I can't copy it back to the HD (Which is extended (journaled)) because I get the Error-8003, AND through little internets research it seems I can't partition my Macintosh HD because it contains CoreStorage Physical volumes.

So will deleting that back up (the first and only) fix my problem and allow me to partition my main hard drive?

Responses appreciated