fwiw, i piggy backed something similar in this thread starting with post 12.

now as to the time capsule, the concept is great and goalie-parents use it and the fact that there are additional ethernet ports and a usb port make things good if hooking up a wired usb printer or a wireless printer via ethernet.

t/c works well tho the initial backup may take up to and perhaps longer than 24 hours (and if you do go with t/c, i do recommend downloading "time machine editor" as it allows you to change the back-up settings on t/c to whatever you want vs hourly, daily weekly etc as i find not being able to set my own b/u schedule a pita)

myself, i use the time machine software but with an external drive for back-up and it did save my bacon on my ancient (and slow laptop) as the h/d crashed but after 18 hours (i told you it was slow)

the only "issue" i have with my set up is that where i use an external firewire drive, i need to physically connect it to the laptop to back up but since it's only once/week, i leave the drive permanently connected to my i-mac and just un-plug it from the imac and plug it into the laptop. now, if my router had a usb port then it would make life a bit easier as the drive has both fw 400 & 800 and usb 2.0 ports