Lightroom Catalog and backup

Hi there, I currently import all of my photos using EOS utility into the "My Pictures" folder
in this format

2012_07_06

and then I add them to my lightroom catalog without moving them, the problem I have is that in lightroom the "My Pictures" drop down is getting far too long, with a folder for almost every day of the year since 2008

so what I want to do is use a folder structure like this Year->Month->Day

Questions:

1: Can I re-import the "My Pictures" folder to light room using the "move" setting? and restructure the folder settings here? and if I do this will the where will the sidecar files be?

2: When doing a backup of my photos, do I have to back up
a: My Pictures
b: LR Catalog
c: is there anything else?

Don't Panic! Solved,

With LR4 you can create folders within your My Pictures folder, so I created a folder for each year and moved all of the folders for that year into the folder of that year. . . . make sense? well it does to me.

Doing this also moves the folder structure in Windows which is exactly what I was after