I need a new router (my draft N D-Link-655 has never worked constantly resetting/rebooting never fixed the problem was away for work the last 8 months so never had time to deal with it). I'd decided to go for the Airport Extreme -- we have a PC Desktop and laptop both running XP, and my MBP along with another Macbook, in addition to a Slingbox, wireless multifunction HP printer (built in Wi-Fi) and a D-Link wireless webcam. Then I started reading about the 500GB Time Capsule. I realize the HDD in the Time Capsule, even in optimal conditions is not fast enough to serve as a media streaming device. That being said, the HDD would be used (ideally) for centralized media file sharing between all of the above devices and to allow Time Machine on my MBP to back-up wirelessly. After reading the various related posts, I understand I should be able to do the same things I describe above by hooking up my 500GB external drive (now running over FW800 to my MBP) via USB to the Airport Extreme, including Time Machine backup wirelessly from the MBP? The aesthetics of the setup don't concern me as much, and the other MacBook has its own external drive for Time Machine. The other XP devices have independent back-up devices of their own. Is there any enhanced functionality or speed or ease of use I would be missing out on by not getting a 500GB Time Capsule? To make matters more complicated, I asked the wife if I saved money going for the Airport Extreme setup, could I use the difference toward a 3G iPhone when sanity is restored after the initial gang-rush (I'm not in any hurry to get one)? Shockinging she said yes. So the question is, can I do what I need to do with an Airport Express + external 500GB HD connected via USB to it (and then swing an iPhone out of the deal), or should I go ahead and forget the iPhone and just get the 500GB Time Capsule? Thanks in advance.