So how does she go about setting up an iPhoto library to be accessed from the smaller 500GB external drive she has? Unfortunately she would have to be connected to her external drive when viewing or working with pictures. this might be ok if she uses the laptop at a desk, but not very portable.
That can be done by copying the iPhoto library to an External Drive and then pointing iPhoto to the new location of the iPhoto Library. (Quit iPhoto. Copy iPhoto Library as a whole to the External. When done - Hold the alt/option key then click iPhoto to open it. iPhoto will now ask for the location of a Library. Navigate to the new location and select the copied Library. From then on the selected Library will be the default. (Provided the disk is connected)
If portability with the entire file collection is the goal then a larger internal drive may be a (Temp) solution or a more portable external if the current enclosure is too bulky.
Having an older External available makes it easier.
Moving files off the internal and to both the 500GB and the 2TB before deleting them from the MacBook Pro's internal drive will not just create free space but also creates back ups -which is essential as you suggested- with irreplaceable files such as photos.
If the MacBook Pro is already telling her the drive is full it is essential and urgent that she doesn't do much with that Mac until free space is created on the internal drive.
(I would not run an updater in that state, I think)
If the non-destructive repartitioning of the 2TB is considered it should be done before additional files are moved over to preserve enough contiguous free space for the re-partitioning to work.
Suggestion:
1 - Immediately delete music or other non-essential and easily replaceable files from the MacBook Pro to create at least 10% of free space on the internal drive.
(The music already exist in the Time Machine back ups on the 2 TB drive so won't be lost completely unless the partitioning fails catastrophically later on. Not as much a concern as the inevitable problems caused by an internal filled to capacity.)
2. Clone the internal to the 500GB drive.
3. Add additional unique files to the 500GB drive by copying them over from the 2TB drive.
(All important files now exist in 3 separate places. (4 times when you count Time Machine))
4 - Partition the 2TB drive. As suggested earlier by several people. That leaves one partition for Time Machine and one partition where additional files can be added/kept at the root level.
5. Move the photo files etc out of the Time Machine partition once the second partition is created in the available space.
(Eventually use that second partition for a bootable clone of the internal drive - pre-existing files can be preserved with incremental back ups. See the suggestion about using Carbon Copy Cloner made earlier in the thread.)
Provided the re-partitioning goes as it should you now have 2 of everything except the music. (3 when you count Time Machine) on two external drives.
(If Time Machine backs up to that 2TB drive and is connected all the time for that purpose while the MacBook is on the desk I would point iPhoto to a Library on the other partition of that drive.)
6. Delete additional files from the internal to make the MacBook Pro workable again once confirmed that the two externals work.