Hello: I'm just joining in the discussion for help with my Lion, too. Hopefully someone can help!
It's very slow and appears "stuck." The first time Time Machine tried to run on Lion, it said I would need to go through 40 GB of material -- I thought it was just a glitch (Time Machine with a Time Capsule can be glitchy) -- stopped the back-up, and restarted.
That appears to ahve made things worse as it can't seem to get past "Preparing Backup."
I've reseted per Pondini's website (A4).
I would go on to do A5, except my Disk Utility freezes up whenever I try to drag my sparse bundle into the left window in Disk Utility. Maybe because it's too big?
Here was my log until I canceled the backup. Should I just let it run overnight?
I've connected my Mac to the Time Capsule with an ethernet cable. I hear the Time Capsule clicking and making its thinking noises:
Starting standard backup
Attempting to mount network destination URL: afp://Melissa%20Chan@Melissa-Chans-Time-Capsule.local/Data
Mounted network destination at mountpoint: /Volumes/Data using URL: afp://Melissa%20Chan@Melissa-Chans-Time-Capsule.local/Data
QUICKCHECK ONLY; FILESYSTEM CLEAN
Disk image /Volumes/Data/Melissa Chan’s MacBook Pro.sparsebundle mounted at: /Volumes/Time Machine Backups
Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
Event store UUIDs don't match for volume: Macintosh HD
Waiting for index to be ready (100)
Waiting for index to be ready (100)
Waiting for index to be ready (100)
Waiting for index to be ready (100)
Waiting for index to be ready (100)
Waiting for index to be ready (100)
Deep event scan at path:/ reason:must scan subdirs|new event db|
Finished scan
Backup canceled.