These probably aren't the answers you want, but I'll go ahead and give it a shot:
1) iPod - your music should already be in iTunes, so you wouldn't have to back that up. Any data on the iPod could be easily copied to your hard drive, thereby "backing it up."
2) QuickTime - I believe you need QuickTime Pro to extract audio. I have QuickTime 6 Pro, and I can extract the audio or video tracks from a number of different formats with no problem. You might do a search on versiontracker.com for a program other than QuickTime that'll provide this functionality.
Sorry, I know these aren't the best answers, but... perhaps someone else can help you better.