I need to get a bigger (or additional) external hard drive, mainly for backups and storing family photos and videos. It would be nice to have a Time Capsule for wireless backups using Time Machine, but 1) we don't need 2TB of storage and 2) $299 (or $249 refurbished) is more than I'd like to spend for an external hard drive, especially since an additional 500GB drive would do us just fine. Are there any alternative setups to the Time Capsule that would allow us to use Time Machine via WiFi? I've heard that it's not possible to use Time Machine with an external drive connected to a wireless router via USB. Is that true? Are there other solutions?