Backing up my pcs OS ? RAID ? NETWORKING SPEED ..NETWORK CARD 10/100

Im on my second day with my new My Book Live 2tb , I used smartware to do a backup and it says it continious so it sort of like createing a a copy of my important files , How can I do this for the entire OS … I would like it to be continous so the back up changes to match the changes to my OS . Can I have more then one of this type of backup at one time with mybook live .Can I do OS with smartware or do I need to use Windowes 7 backup to mybook live

Also after my smartware backup completed the green led light still blinks is that because it is monidoring the files it just backed up for changes ?

Im running Windows 7 64bit

I also want to crate a folder to store pictures and docs that are easy to access from my pc , like they where on my internal hd , can a network HD do this ? My router is Cisco EA3500 GIGABIT Router but my network card on pc  is only 10/100 should I change my network card to 100/1000

Edit: 

I forgot to mention on my post a moment ago , I installed quick veiw and I cant get it to open , what should open when i click on quick veiw short cut ?

W7 64 BIT