So is the general rule of thumb to run your computer off your SSD (install operating system on it etc.) and then use the 1tb drive as storage for all files etc.?
Indeed!
The high bandwith/important tasks (operating system, swap file, ..) are operating on the SSD while low priority data can be stored on the HDD. (movies, audio files..)
Espacially stuff like Fraps is awesome with a SSD because the system is able to write the uncompressed video stream on-line, while the SSD itself has enough output (response time, bandwith) to manage a game in the same time.