Other members can correct me if I'm wrong or supplement my answers below....
1. if i get a Fire Wire drive do i need to plug it in to an outlet?
With Firewire I don't believe you would have to, but with USB 2.0, yes, I believe you would. For drives which have dual interfaces, not sure how that works to be honest.
2. can the drive be left on all the time or will that destroy it?
Shouldn't harm it - that would be no different than leaving your computer on all the time. In fact, many people say that you wear out a a drive more by powering it on and off, as the greatest chance for something to go wrong or get damaged is during the power up and power down cycles, i.e. when the drive heads engage from scratch. It's the same as starting a car engine really.
3. if the iMac goes to sleep will the external drive also go to sleep?
Not sure about sleep mode wrt ext HDDs...
4. if i turn off the computer while the hard drive is connected and forget to "eject" it - will it (the content) be damaged?
The content should not be damaged, although it may depend on the drive you're using. The MyBook you've cited for instance employs "Intelligent Drive Management" whereby the drive turns itself on and off in tandem with your computer. In general though, you may need to disconnect and reconnet the drive for your computer to acknowledge it again if it loses it during sleep mode, but I doubt the content should be compromised.
5. if i loose power (which has only happened once in my lifetime in nyc) and the dirve is connected - will it get damaged?
There is a possibility, but none greater IMO than with any other electronic appliance you might have which gets abruptly shut down due to a power loss or power surge.
Specifically with regards to the MyBook you are looking at, I believe it also has a "Safe Shutdown" feature which supposedly prevents the drive from being powered down until all the data has been written. In a power outtage though, I'm assuming all bets are off. I'm assuming other drives have similar features to this as well.
Also, it's "lose" not "loose". It's a pet peeve of mine when people continually misspell simple words.
6. how are you guys/gals going to use external hard drives/ time machine?
I will be partitioning an external drive into 3 partitions - one for my MacBook Pro, one for my future iMac and one for backing up data in general.
7. which drive do you recommend - "my book" looked good to me?
I have read several bad reviews regarding the MyBooks so cannot recommend them myself. When it comes to hard drives, I always highly recommend Seagate.
Hope this helps a bit....