I didn't do the reinstall because of Time Machine. I stopped using Time Machine by that point because it had gone for over three days without an hourly backup. That defeats the purpose for having backups, right? I moved over to Carbon Copy Cloner, which backed up my drive, I think in about 8 hours, and have been doing nightly backups with that every since. TM worked great up to ML, and then it had the annoying habit of making the Mac very sluggish while doing its backup. That was the first indication that something was amiss. That never happaned in Lion and earlier. I often had to stop the backup so I could get some work done.
The reason I did the fresh install was for other ML bugs. Now when I installed ML, it was running great. I read about people having the spinning beachball of death, but that wasn't happening to me. And then it started. Nothing had changed on my machine as far as apps, and it wasn't from the 10.8.2 update. It started around 10.8.1. While it's not directly related to the Time Machine problem, I think they are symptomatic of something else going on system wide. The fact that I get the problems with rebooting, and then they will go away if I do a safe boot, makes me think it has to do with OS X's new feature of saving the state of the apps, etc. When you remove these, things work normally.
ML's Finder in particular seem to have issues. Activity Monitor shows that the Finder has had 13 hangs since I restarted about 6 hours ago. Most of that time the Mac has been sitting idle.
Also, I wasn't saying that Outlook was causing the TM issue. I was saying that Outlook has an issue with ML. Often is hangs on the "setting up identity" phase. Once again, clearing caches and removing the savedState files fixes this until the next time the Mac is shut down.
I've been using Macs since about 1991. I've used every version of the Mac System/OS software since then, with the exception of the OS X Public Beta. OS X is far less buggy than System 7 through OS 9 was, but ML is far buggier than the past few versions.
But if I don't shut down, everything settles in and my Mac will do what it's supposed to do. Meanwhile my son and ex wife stayed on Lion because they saw the issues I was having. I'm sure Apple will fix this eventually.