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FileVault and Time machine best practices

Using a FileVaulted home directory created in 10.5 (instead of migrated from 10.4) does the home directory get backed-up while one is logged in? Is the entire directory backed up or maybe just the portions not in use? I'm trying to generate a best practices guide for my end users. Any pointers/links would be appreciated.
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There is a discussion of the issue here:  http://www.macosxhints.com/article.php?story=2007111404402514
These screen shots answer your question about Time Machine and File Vault. Basically if users want to be able to restore individual files from their Home folders, they can't use File Vault. TM will only back of the Home folder (with File Vault on) while the user is logged out. Then it can only be restored with a full system restore from the OS X DVD "Restore from Backup" option.
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