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Totally Lost On Server Backups (Help)

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I just recently switched over to WHS 2011 and I am totally confused when it comes to the server backups. I have 12TB of data on my server. Therefore, I have the following questions:



1. Do I have to have 12TB of space to backup my server or will the backups be compressed?

2. Currently I have two 2TB external HDD for server backup. When I attempted a backup, it starts backing up to one of the drives. I was not given an option to select which drive to backup to.....so will it start using the second drive once the first is filled?

3. I started a backup with all my volumes selected. At the time, I only had one of the 2TB Backup drives assigned to the server backup. I was never given a warning that the target drive was too small for the amount of data on the source drives. Does that mean it was going to compress 12TB of data onto a 2TB drive?

Thanks in advance for your assistance.

Rodney

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