Time Machine will keep multiple iterations of a document and also keep copies of files that have been deleted from your Mac (that's the major point of Time Machine or any other backup). It's therefore completely normal for a Time Machine volume to show more files and take up more space than your hard drive currently shows.
From you comment about Trash, I was not able to tell if you were aware items in Trash are not backed up. This is true of the vast majority of backup software not just Time Machine.
You will not believe how many times users came to me complaining because they were not able to recover items in Trash from the backups.
Thanks again for the advice and help.
I knew all about Trash after my restore. When I was done restoring through Mozy, I Trashed the folder.
The Apple tech and I couldn't figure why my hard drive had so many more files than my Time Machine and Mozy backups until I remembered that folder. It meant the HD had most of my files twice (two copies).
And, yes I understand that once Trash is emptied it is gone forever. That is why I try to to keep my trash for awhile.