Initial time machine backup larger than actual computer harddrive
I've got an iMac with a 1TB harddrive and am trying to use a time machine set up to back up my harddrive. The external harddrive I'm using for my back up is also 1TB. I currently have about 135GB of free space on my iMac's harddrive and my external drive is completely empty. When I try to back up using time machine it tells me that the back up is 1.2TB and cannot fit on my 1TB external harddrive. What would cause the initial back up to be larger than the actual computers harddrive? Is there anything I can do to rectify this issue without me needing to purchase a larger external harddrive for back up?
iMac Intel Core 2 Duo, Mac OS X (10.6)