Ghost 14: Does "Start a new recovery point set" automatically erase the old one?

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I run Ghost 14 on Windows XP Home SP3.

 

I back up daily.

 

I want to set the backup to automatically start a new set at the first of each month.

 

Questions: 

 

     1.  Will this new backup set automatically erase the previous set? (The manual is silent on this point.)

 

     2.  If so, is there any way to prevent erasure (such as automatically assigning a new folder for each new backup)?

 

     3. Should I instead just keep adding to the original backup set  until I run out of space? (My external backup drive is 3 Tb.)