My SSD is only 150GB big with the rest being dedicated to Win7, but the first backup is over TC is over 700GB big?? This is the only disc selected for the backup so why is it that size
"Erasing a disk/partition that's excluded in Time Machine Preferences > Options will remove it from the exclusions box, so Time Machine will try to back it up."
Could TM be backing up the contents of your 2 TB HDD without you knowing?
Another idea is to use TimeTracker which can show you the contents of each backup. It's "pre-release" but I've used it and it works well. Available free at http://www.charlessoft.com/.
You probably don't want to do that unless you're running Lion (and maybe not even then). I don't have any personal experience, but according to Should I delete old backups? If so, How?, you shouldn't do it via the finder:
"Do not attempt this via the Finder (technically, it's supported on Lion only, but isn't foolproof. If you have a problem, see the gray box at the bottom of this page.)"