OK, now that I have Lr up and running, last night I successfully moved the catalog to my internal drive, and deleted it from the "My Pictures folder"
I now understand what the Lightroom file is all about. I understand Bob's point about double clicking the .lrcat file in the new location, and doing so completes the transfer to my internal drive. I understand how make new catalogs to the location of my choice.
I imported my first SD card, gave it date and location and imported that into my new catalog, then I worked a few files in the develop module before calling it a night.
Looking back, I really should waited until I had Lr installed up and running, work with it, get comfortable with it, get a understanding of the catalog and how it works before I started asking questions about backups.
I'll just let my backup software run as is for now, I'll still be covered.
Jeff, I'm going buy the "Guide To Lightroom 3" I do plan to import my old files, just not right away, when I feel I'm ready.
Thanks for all the help everyone, I'm sure I'll have more questions down the road, but I'm moving foreword now.