[dnanian]

Hi, 'freedevil'. We try to cover this pretty explicitly in the User's Guide, but in case you missed it, please see "Storing a backup alongside other files on a destination drive" in there. It explains exactly how to accomplish this.

And, yes, we back up everything -- but applications that "tie" themselves to a specific disk will likely require you to reactivate them.

If you're going to get a new Mac, I really encourage you to partition your FireWire drive appropriately and back up directly to it. That'll make it a lot easier to restore, since you'll be able to migrate (and even boot directly from the drive).

Hope that helps.