new user needing help please

[TomBB]

Hello all.
I am confused on figuring out the best way to set up a rotating schedule for my system, and would like pointers. I have an intel imac with a 500gb internal drive, using about 170gb right now. I am running parallels so have windows xp on my internal drive as well. I have an external fw drive that is 300gb in capacity to backup to.

Should I:

1. forget about rotating backups
2. use sparse disk images with compression for backups (not sure how to set this up in a rotating manner).
3. partition external or internal drive in some fashion
4. give up, live life recklessly, eat dessert first

Thanks in advance for helping a newbie out!