Backing up data (time machine)

Hi all, I have a two part question, well, they could be two separate questions but they are both to do with backing up data.

Recently I transferred a bunch of photos to an external HD which then crashed and I slung it in annoyance, I realized that I hadn't made a backup, I'd just moved them. originals were dig out of boxes, lofts etc but there were some total losses...

1) What method of backing up do you recommend. I think I would like to keep my macbook pros hard drive clear of clutter which these images will quickly become. I shoot many images, make edits and then they are printed/posted, never to be looked at again but copies are needed just in case. I also want to keep family photos very safe. Id like to keep all versions of software PS 2-3 etc as a backup but as I use CS5, all old applications can be removed.

2) Until I find the answer to the above question I have purchased a WD passport studio 640GB HD and used timemachine to back everything up.
Can I partition the drive after a complete timemachine backup so I can use it like a normal HD in order to easily transfer files from my home to office mac without the need to carry the lappy.

When it comes to backing up / hard drives etc, I am totally clueless. The issues I have with time capsule are: price, why do I need it to be a wifi base; is not RAID 1 (is RAID 1 really 2x secure, power surge etc)

Many thanks