SQL Maintenance Plans Advice

Experts, we have SQL server 2005 and I am by no means an expert. I need advice on what we are doing and what we need to change with regard to our backups, and maintenance. This was all set up with little knowledge, but as I search around, true experts will probably say: "Here's how you really should do it."

Here is what we do based on our recovery policy:

1. We backup transaction logs every 2 hours using maitenance plan (works fine)
2. We backup database (full) every night
3. Recovery Model: Full
4. Reorganize and Rebuild indexes once a week.
5. We used to shrink database very week but no longer (see below)

Code to rebuild/reindex:

EXECUTE dbo.IndexOptimize
@Databases = 'USER_DATABASES',
@FragmentationLow = NULL,
@FragmentationMedium = 'INDEX_REORGANIZE,INDEX_REBUILD_ONLINE,INDEX_REBUILD_OFFLINE',
@FragmentationHigh = 'INDEX_REBUILD_ONLINE,INDEX_REBUILD_OFFLINE',
@FragmentationLevel1 = 5,
@FragmentationLevel2 = 30

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I have read that shrinking a database is NEVER what you should do:
http://www.straightpathsql.com/archives/2009/01/dont-touch-that-shrink-button/

Also, I can never tell if the maintenance plans actually works (reindex) as it says successful.

My questions are basic: based on above, how can we improve what we are doing?

What is the proper sequence for index rebuilds/reorgs?