Time Machine, FileVault, and "Other"

Time Machine doesn't back up your FileVaulted home folder while you are logged in.
Attach the Time Machine backup drive.
After the Time Machine backup drive shows up in Finder, then log out of your FileVault account and make sure the logout window specifically says that it's backing up the FileVault.
You can't browse items in that folder in Time Machine or restore individual items.
A good alternative may be to create a disk image with a password for your home folder and make a copy to the external drive.

Aperture: Set Time Machine to exclude Aperture library from automatic backups
http://docs.info.apple.com/article.html?artnum=306853

Thing two - Depends on the size of your drive.

You can do what you plan but Apple suggests it is best to let Time Machine have its own partition. There are directions for partitioning and formatting a Time Machine disk in this article. You would want to make two or three partitions rather than one. Also, people with PPC Macs should substitute Apple Partition Map for GUID when following the directions.

Aperture files must be excluded from Time Machine backups due to file corruption. They should be backed up by other means. Carbon Copy Cloner is Leopard compatible and can do incremental backups as well as clones.
Carbon Copy Cloner
http://www.versiontracker.com/dyn/moreinfo/macosx/13260

Time Machine will only back up FileVault on when the user logs out. Also, it would be best to use the Leopard version of FileVault. You can't use the Time Machine browser to restore individual files but you can do so in the finder.
10.5: How to use Time Machine with FileVault
http://www.macosxhints.com/article.php?story=2007111404402514

If you have confidential client files, it is an option that protects the information in case of theft.
When you are logged into your account, the data is not encrypted.
Only when you are logged out or shut down.
File Vault isn't perfect and many users have lost their entire home folder due to corruption.
You need to weigh the danger of losing the data due to such corruption against the threat of lose of data due to theft.
The next consideration in data safety is storing key data, like personal photos, off site in case of fire or theft.

This isn't exactly true. the data is always encrypted on the disk when using FileVault. The decryption process to access files is seamless to the end user.

Once you are logged into your account you can go to the Users folder and the contents of the folder are no longer a sparse.bundle or sparse.image.
Data can be sent via attachment in Mail and is not encrypted, nor are disks that you burn of the data.
Data transferred to external drives, in fact anywhere outside the home folder is not encrypted.
In fact in Time Machine, the data is not backed up while logged into the account because it would defeat the purpose of the File Vault, because the data while logged in is no longer encrypted.
It is only when you log out and the data is encrypted that Time Machine is now allowed to back up changes to a File Vault encrypted home folder because at that moment it is encrypted.
This information is provided in Security>File Vault.
Choose to encrypt and it asks you for a password, enter one and before it encrypts you get a message about File Vault and Time Machine explaining how it backs up and the limits of recovery.

I can live with the fact that whilst logged in the filevault is "open" and after logout or shutdown it is "closed". Just like a bank vault one only wants it safe whilst being done with constant transactions. It would slow up things too much. Too bad it costs both extra time and logic. Two factors apple always wanted to be needed at a minimum...

I got three questions about filevault:

1) when i "lock" my macbook using a dashboard gadget this wont "close" my filevault?
2) why not add the feature to filevault to "backup filevault home now" while using secondary button on the dock icon?
3) is there a useful structure that could help? a "work" account (with filevault) for security sensitive activities, and a "home" account for all the other stuff?

Question 1 - no it does not close file vault
2- if it is feature you want you need to go to the apple web site and provide feedback as a feature request. But what you are asking is already available all you have to do is log out. But expecting to be able to work on your files at the same time is not possible it is like trying to fix the leg of the chair you are sitting in. The same situation exists in Disk Utility in the Applications folder. You cannot repair disk because the system you are wanting to repair is in use.
3. There has always been another options.
You can go to Disk Utility and create a disk image of any disk or folder.
One of the options when you create a disk image is to encrypt it and provide password protection.
So you can have your sensitive data stored in an encrypted folder and simply drag a copy of it to the external drive to back it up.
You can also hide files on your computer.
You can store them in Mail accounts that need to be enabled to see them or you can store them in the package contents of most application contents packages or add a period in front of the file name to hide them like many system resource files.

I bought a MyBook western digital standalone 1Terrabyte hard drive. My intention was to finally enable Time Machine.

Lo and behold Time Machine tells me that it can't back up my home folder because File Vault is turned on and that I must remove FileVault.

Ok.. I attempt to turn off File Vault and I get an immediate 'an error has occured during copying. Your folder will remain encrypted'

Very frustrating!

It's for a reason I call FileVault VileFault.

Even worse was a problem VileFault ooops FileVault caused me under Leopard. For security, I went and changed the user password for my account --- the documentation I had read had said that related passwords would automatically be changed.

No. The EVILVault password was not changed and on logging in, the machine just went into permanent limbo. I was on the road and was only able to get back into VileFault after getting home, finding the Leopard install DVD and login using that to change password of the user account back to my old password.

So, VileFault ensures you cannot do the simplest security tactic - change passwords. Ugly, unreliable, and dangerous. You corrupt the VileFault file and EVERYTHING in your digital life on the user home folder is lost forever. Ugly.

Imran