Okay, I just bought the new Airport Extreme so that I can attach my 1TB WesternDigital MyBook to its USB port. I formatted the hard drive for Mac OS Extended (Journaled) with the GUID setting. I already hooked it up directly to my new MacBook Pro and completed the initial backup, with the greatest of ease. After plugging it into the Airport, I turned on "File Sharing" with the Airport disk, and am able to successfully mount it using the Finder. Opening up the Time Machine preferences, it recognizes that the disk is present, which is great. The only issue now is that Time Machine says that it will not write to disks with an AppleShare format. I know for a fact that it's Mac OS Extended (Journaled), but when sharing the disk, and viewing the information about the remote disk as it sits on my desktop, it reads that the format is "AppleShare."
Here's the readout from Time Machine:
"The backup volume is not in Mac OS Extended (Journaled) format, which is required."
I have the latest Firmware on my Airport Extreme, as well.
Here's a screen shot of the info as the remote disk mounts on my desktop:
Here's the settings from my Airport Utility:
