how to solve time machine error-1

I checked the pondini fixes and ended up doing the following - in case this could help someone else with OSX Lion and Time Capsule... http://pondini.org/TM/Troubleshooting.html

First, I downloaded and used Airport Utility 5.6 instead of 6.1 - BTW, I had to attempt download and installation THREE times before the program actually installed. Be persistant.

Pondini #5: It's possible some names (of all things!) may be a problem. See item C9. I had to re-name my Mac, Time Capsule, network, etc... to remove all apostrophes and spaces.

Pondini #7: If you have WD SmartWare installed on Lion, it's not compatible, per RoaringApps, and there are reports it can cause this problem as well. Use Western Digital's uninstaller, or delete the app from /Applications and the files com.wdc.WDDMservice.plist and com.wdc.WDSmartWareServer.plist from /Library/LaunchDaemons. There may also be a file in Library/Application Support.

I then had to shut down computer, unplug Time Capsule, unplug modem; plug everything in again, then reboot computer; then had to go to Apple- System Preferences- Network- and reselect my Time Capsule to connect to WiFi again.

Then opened Time Machine preferences again and attempted back up - it worked!

Bingo! Uninstalling WD SmartWare solved it for me.