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I think apple routers are great. Simple effortless setup and no problems.
You get what you pay for with Apple imo.
 
I bought a 500GB TC from a friend for a good price (he doesn't have a Mac so he got a Dlink router instead). Anyways if I was to buy both products new, the Airport Extreme Base Station + External 500GB HDD would probably be cheaper, but its nice having just one white box sitting on my desk.

I was originally going to just get an external USB hard drive (I have the Unibody Macbook so no firewire :( ) and just run Time Machine backups off that, and it'd be faster than over the network (wired or wireless). But to be honest, I'm lazy, so I'd probably always forget to plug it in, and thus no backups would be made, lol.

I like how when I get home from work, turn on my Macbook, and just start using it, and Time machine backups are going on seamlessly in the background without me worrying about it. Its slower but after the initial backup (probably want to be hard-wired into the network port) which takes awhile, subsequent backups aren't too bad as it just adds the new files you create to the backup file. Just my $0.02
 
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