Help with Nandroid

I have a rooted Galaxy Nexus that is set up just how I want it and I'm wondering about a nandroid. I have never been successful in doing any type of backup / recovery. I have researched nandroids and I'm still not really sure what they are. First, if I make a nandroid, is it a copy of my ENTIRE phone? In other words, when I restore, my phone will look exactly as it does now... my wallpaper, my home screens, apps, settings, alarms, phone book... and so on. One site said that SD contents are not included in nandroids. Does that mean that all of my music and photos are gone. That takes hours to transfer from the computer. My Nexus does not have an SD card, so if I "wipe phone" does everything get erased? If I have 2 ROMs on my phone, say CM and AOKP, can I switch back and forth just by wiping, flashing and restoring a nandroid? Also, do I have to use CWM or can I use TWRP instead? Finally, what is the diffence between a nandroid and Titanium Backup. I have TB and was never able to restore anything with it eventho I had made a backup.
Sorry yawl... I am just really confused and don't want to have to resetup my entire phone again.

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