There are two ways to define a source folder:

• click the large folder button or
• drop a folder onto the text describing the folder definition

The files necessary to restore your user environment are in your home directory. The best idea is to keep all your files in your home directory. This way you can restore a system by re-installing the system from your original disks and then restore your home directory from the backup.

See the Backup Strategy section for a suggested method of backing up and restoring an OS X system.