Apple's position on wireless backups through Airport has been that it wasn't ready for prime time. With the introduction of Time Capsule they seem to say that it now is. Is the Time Capsule wireless the same as Airport Extreme? Or will we have to wait for an updated AE? I already have a large external drive for Time Machine backups. Time Machine works by taking advantage of the semantics of Unix hard links. These are not normally available with network filing protocols (hence the lack of support for network drives). I imagine that Apple has proprietary extensions to the network filing protocol used (whatever it is) that enable Time Capsule. It is also not clear whether it can use a hard drive plugged into the USB connection for Time Capsule (it can for general network storage). Craig