After ignoring repeated requests from my host

Today I will create the backup (.txt) file for settings. Not so much worried about the settings, but does this back up posts too. Or should I also perform the WP backup?
A related question, when I run the settings backup, does the *.txt file get placed on the server or am I prompted? Never mind this question - trial and error gave me the answer.
Sorry about these questions. This ordeal makes me a little nervous and

So if any of you can alleviate my fears (even just a little), I'll feel much better

Thank you
Brian