Your 1 TB Lacie is perfect for Time Machine!
If you back up your system once, lets say today for example. Then over the next 4 months you add lots of pictures, music, and other things. Then one morning 4 months from now your internal drive crashes, if you
only have back up of the things you backed up today then you lost all that new music, pictures and other things you added.
Now lets say you use Time Machine begining today it will back up EVERYTHING on your machine today and then will back up all the stuff you add over the course of time automatically. TM DOES NOT backup everything every time it backs up only the new or changed stuff. So let's use the same scenario OK....you do a back up using TM today, then over the next 4 months you add pictures, music and other stuff. Then one morning 4 months from now your internal drive crashes, you run to get it fixed and get a new internal drive installed. Then all you need to do is restore your system from TM and you get back EVERYTHING you had on your TM drive and you can get going just like the day before your internal drive crashed.
The whole idea of TM is it will back up files for you automatically, you don't have to remember to drag and drop or start a back up program. Then if you accidentally erase something or make a revision to something and need an earlier version (school work for example) on your internal drive you can use TM to restore it in seconds. Or let's say your internal drive crashes once you get your iMac repaired you have all stuff just waiting for you on TM ready to go back on to your new internal HD.
It's really a simple concept, read about it here:
http://www.apple.com/macosx/features/timemachine.html
Last a bootable drive is a drive you can start your computer from. The internal drive on you iMac is a bootable drive, if you get another external drive and make it bootable (in your case you would only need a 320GB drive) if your internal drive crashes you could use the bootable drive to start your computer and run it from. They're great in case of an emergency.