Since originally posting I have experimented a lot and come up with some more questions:
1. OldAdamUser2 you say that you "disable the automatic backup". I didn't know there was an automatic backup, the only one I know about is the one you select at shutdown. I would love to have that actually - how do you enable it? At what frequency does it backup?
2. I copied a movie to my home folder, then I also changed the contents of .wbar in my home folder. I rebooted WITHOUT checking "backup" and when I got back in, the movie was still there, however, the changes I made to .wbar were not. How come? Why is one file persisted but not the other? What is TC doing differently in those cases?
3. I'm a little confused on what it means to have persistent folders like home and opt if we still have to backup. What is persistent about them?
4. After copying my movie to home, I noticed that the backup process was taking very long. Of course I realized that TC was backing up my movie to mydata, so I added /home/Movies to xfiletools.lst and that solved the problem. But this now poses a usability issue. It's quite cumbersome to have to update that file every time I create a folder or download something. Is this what people are doing? Should I just create a folder called 'nobackup' (even though it will actually persist) and use that for all my personal files and folders? It's a bit ugly, but it works. What are others doing?
5. Since all my folders are persistent, why does backup still have to go through mydata.tgz? Is there a way to just have the files backup to their proper places without compression or this intermediate step? I have no issues with drive space if this is what it's all about.
Thanks for taking the time to read this, and thanks TC team for a great product - even with its quirks