+1. Does time machine back up everything i do. Or. Does it just back up everything thats changed every hour.+
Time Machine only backs up new or changed files but it uses hard links to keep track of what is currently on your hard drive that Time Machine has previously backed up. You can read about how Time Machine uses hard links in this Ars Technica review.
http://arstechnica.com/reviews/os/mac-os-x-10-5.ars/14
+For example if i received an email and then deleted it a couple of minutes afterwards would that get backed up?+
Unless the email was on your hard drive when Time Machine did its hourly backups the deleted email would not be backed up. Also, Time Machine retains the first backup of the day for its daily backup, deleting previous hourly backups. If a file was not included in the first backup of the day and was on your computer for less than a day it will be deleted when Time Machine deletes its hourly backups. After a month Time Machine retains the daily backup made on the same day as the initial backup for its weekly backup. If a file was not in that specific backup and was on your computer for less than a week it would not be retained.
+2. Im guessing it only does it every hour, so in that case does my hard drive only need to boot up every hour?+
I'm not sure I understand this question. If your Mac is not booted up there wouldn't be anything new for Time Machine to back up.
+3. If i don't use my computer for a day would time machine know that and not do anything at all that day?+
If one account is logged in Time Machine will make backups as some system files will change. I stay logged in and leave my Mini on pretty much all the time. Time Machine makes backups whether or not I am actually using the computer but the backups are quite small.