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Restoring and backing up an external hard drive

Update:10-11Source: network consolidation
I have had a WD My Book external for a few years and it has been working great up until yesterday. This is what is showing up.
As I am typing this it is no longer grayed out, I am in the process of copying and pasting to the new 3TB External. This is freaking me out... For future reference what do I do in the restore tab if anyone can help.

The Best Answer

Your iPhone's backup, which is created and maintained by iTunes stores data such as most iPhone settings, email account settings, contact info, SMS messages, notes, recent calls, call favorites, photos available in your iPhone's camera roll (you shouldn't depend on your iPhone's backup alone for these photos, which should be imported by your computer as with any other digital camera), and 3rd party app settings and data created and stored by a 3rd party app.
It isn't necessary to backup your iPhone's backup. You can manually update your iPhone's backup at any time without syncing, and the same when connecting your iPhone with iTunes on another computer. With your iPhone connected to iTunes and without syncing, control-click on your iPhone and at the menu window that appears, select Back Up.
Maintaining a backup of your iTunes library is much more important - copying the entire iTunes named folder to an external drive or some other external media used for backup purposes.
Since the iPhone is designed to be synced with a supported application on your computer for contact info and calendar events, you should maintain a backup of the supported application on your computer for this data. Photos transferred from your computer to your iPhone are not included with your iPhone's backup, so these photos should be included with your computer's backup along with all other important data.
When syncing an iPhone with iTunes on another computer, only iTunes content on the iPhone will be erased first, not all data on your iPhone such as contact info and calendar events. When selecting photos to be transferred to your iPhone from another computer, all photos available on your iPhone that were transferred from another computer will be erased first. If you don't select to sync contact info and calendar events with a supported application on another computer, contact info and calendar events on your iPhone will not be touched.