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Got mine set up yesterday. It cloned my Airport Extreme fine, although I wish I'd simply first applied the firmware update before proceeding any further with setup. Setup went south until this was done. I did have to reconfig my Airport Express, which I use as a signal extender, which took a minute total.

I'm taking MacWorld's advice and doing my first backup via Ethernet, since I don't have a 802.11n card in my desktop (which has the lion's share of files).

I don't have Time Capsule but I still back-up over with Time Machine over AirDisks (new firmware update). It was a pain to configure and the initial back-up tool over 9 hours for 60 GBs of data from my MBP. However, now that the initial back-up is done, and if the external disk is mounted, back-ups happen automatically as they should, are  quick (only data that has changed is backed-up) and it happens flawlessly. You do need a fast internet connection (I have FiOS), but if you do you will not notice any slow down what so ever - I don't notice anything as far as slowdowns when online.

It is recommended that if you are backing up large files such as when using Final Cut, for example, that you uncheck this option to back up as it will take forever. You can do so under prefs in Time Machine.

After the new firmware everything seems as it should hsve been all along.

I got the Time Capsule. It worked flawlessly as a router between an iMac G5 and a MacBook. The iMac doesn't have leopard on it yet so I did not do a Time Machine Backup, and that's the machine I want to back up to free the internal hard drive from its backup partition. I did not update the firmware, unless Airport Utility did that in the background, but that's the next thing to check before I do any Time Machining.