Hello Crystal and Welcome to Fish Lore.
The filter you have looks exactly like my Magnum HOT filter. Your good bacteria will grow on all surfaces of the filter as stated above. The blue foam sleeve (mine is blue) that slides over the carbon canister section will house your good bacteria and so will the plastic mesh surrounding the container that holds the other filter media (whether you choose to use carbon or stuff it full of more sponges or both). Too, you could always add bio cubes, tubes, any type of filter media that you really want to add into the section that holds the carbon to house more bacteria colonies. Yes, it's a tight fit for sure

Remember to only rinse your filter media in siphoned tank water and never tap water. This will preserve your good bacteria. If you decide to use carbon then change the carbon out completely every 3 weeks so that it doesn't leak the minerals and what I call "cooties" back into the tank
The polishing cartridge (or micron cartridge) I only use every now and then. Everything has to be removed from inside the filter (excluding the impeller in the bottom) and placed in the tank to use the micron cartridge. It really does help to polish the water. The micron cartridge will clog after about 48 hours and has to be rinsed or replaced. I soak mine in a bleach solution to clean it.
Hope this helps yous some. If you have more questions don't hesitate to ask

Ken