My free space on this large drive was disappearing RAPIDLY.
On your EHD, the backup that you designed goes into the Seagate Backup\ComputerName folder. So far so good. The FreeAgent backup software also creates a Seagate Backup\ComputerName\History folder, and it has subfolders Level 2, Level 3, Level 4, etc, all the way up to Level 10. These provide historical checkpoints so you could restore two, three, or four, etc levels older.
For the files you've designated as "to backup," the HISTORY folder ALSO stores a copy each time it backs up, if you've "touched" the file. I back up "Documents & Settings" since I want Desktop, My Docs and Application Data. Application Data includes things such as your Picasa database. For example, if you've done anything in Picasa since your last backup, the next backup includes another copy of its large database. Similarly for other applications.
Unfortunately, changing the number of History backups is not a user-revisable setting. Seagate has my input on that.
Action Plan: when your Seagate FreeAgent drive and backups are losing free space too rapidly, check your Seagate Backup\ComputerName\History folder. Delete older (higher numbered) folders as you see fit. I just reclaimed over 130GB today, and did not delete quite all the levels. You could tweak your backup settings to exclude these Application Data files, but I think one, maybe two copies is useful.
I don't care for "surprises" to the user that are not particularly well-documented. The drive is still a great drive. Your mileage may vary; I hope this is helpful to some of you in your continuing goal to keep the important data backed up!

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