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Yeah, it will work in the same way as a time capsule connected via an ethernet cable.

All you'll need to do is select the drive from time machine preferences.
 
I forgot

I also am backing up wirelessly from my MBP. So the real question is can i back up wirelessly to this drive. or is wireless backup only possible with a TC
 
So it doesnt support it natively but with some twaeking it can be done. thanks very much
 
No hack necessary anymore.

So it doesnt support it natively but with some twaeking it can be done. thanks very much

This hack used to be necessary, but as of earlier this year it is no longer required. Apple released an airport extreme FW upgrade that now allows usb drives plugged into them to be used as wireless TM backup volumes with no modifications whatsoever. It is apparently still "unsupported" though. Not sure why.
 
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