Paragon Hard Disk Mgr SE 9.5 usage questions

Hi, new member here.
After a hard disk failure (disaster no backups) I upgraded to a 500GB disk and bought a 1T external hard disk.

I received PHDM in magazine so trying it for the first time. Questions please:
1. Can I partition my 500GB C drive without losing data?
2. Should I partition my 1T external hard drive before making a copy of C drive to be put on it?
3. Confused by "incremental - differential" choices for backup.
4. Where should I keep the backup - in the same partition as the copy of C disk on the external hard drive or in the other partition on the hard drive.
Really appreciate any help. Paragons help file sadly lacking step by step instructions I can understand with
confidence.

 

1. Yes you can partition without losing data.
2. Yes, I would recommend preparing the 1TB hard drive before copying the partition. There needs to be 'unallocated' space for the Copy Wizard. If you mean to do a backup, and not copy (clone) then you need an existing partition to copy the backup archives to.
3. Incremental is a file-level backup only, each incremental are linked and dependent of one another during the restore. Differential is sector-level backup only, and independent of each other.
4. You can backup wherever there's available space.