Using Time Capsule as shared drive?

Thanks so much.

I have heard there are issues with network drives and Time Machine. Do you know anything about this? Is it with the devices or with the actual software? If its the hardware are there types that work best?

As you already know I am trying to figure out how to set up my backup and storage situation on my network. I have a wireless MacBook Pro and a G4 and another G3 connected to my Verizon router via Ethernet. I could connect a Firewire LaCie drive that I just bought to my G5 and turn on file sharing and I should be able to have all computers access the drive. But I would like to use Time Machine for the laptop and the G5 since this is where most of my work is done.

What would you suggest? What I would like to end up with is one fast as possible drive for my music, video and pics that I can play and work off of. But I was also looking for some way to have some duplication and automation using TM that could also backup the ongoing graphic work in the office. I was thinking of connecting a Time Capsule or another brand of Ethernet connected drive to my network via a Ethernet switch as you suggested earlier. I could keep the Firewire drive on my G5 or maybe connected it to the Ethernet connected drive and have TM backup everything. Am I overcomplicating this?

Then, how can this media storage be combined with backup features for more than one leopard based mac ?
Let's say I want to share iPhoto material through the Time Capsule between two macbooks. If anyone starts altering the data, will this be reflected on the TC, and could iPhoto still be covered by Time Machine ? Will it be possible to manage media ànd backup without duplicating originals ?

My understanding is that, at present, Apple does not support use of Time Machine for backup to network drives. My understanding also is that the reasons are both hardware (the network drives) and software (Time Machine) related.

If Time Capsule/Time Machine does work as advertised, then Time Capsule would seem to be a good solution for providing backups for your Macs. I'd suggest you wait and see what the "early adopters" of this product have to say about it.

I'm not so sure it works with Xbox 360 without the computer as media server