I love Apple hardware and software, but this combination has been completely inoperable for me for a week now. Was previously using Time Machine to back up to an external firewire drive with no issues. Bought a Time Capsule to increase capacity (my older external drive was only 150GB) and have not been able to back up for a week now. Symptoms: - Gets hung consistently in "preparing" state. I don't see the 'deep traversal' message in the system logfiles that I saw reported on other threads. I've allowed it to run in "preparing" for over 8 hours with no visible progress. - At some point during "preparing" it will essentially disable everything else -- the cursor is still active, but no apps will respond. Activity Monitor doesn't show any CPU spike or anything else I can attribute the problem to. - Have Console open during the whole process, don't see anything useful getting logged. - Stopping the backup doesn't work. (And if I stop the backup in 'time machine preferences', it doesn't show stopped in the menu bar icon drop-down. If I hit 'Stop backup' there, then the Preferences pane goes back into 'preparing' state. That seems insane. - The only way I've been able to get past the "preparing" hangup is to delete the old attempted backup from the Time Capsule so that it's starting clean. (Consider for a moment the usefulness of a backup utility that can only be run if there are no previous backups in existence. ). - I've had several backups start (once deleting the previous attempts so it gets past 'preparing'), but none complete. All will eventually hang -- the longest ran 18 hours before hanging. (Or maybe it was complete; I couldn't tell because when I got home from work the system was so locked up the screen wouldn't wake and all I could do was power it down and restart. But it still showed Last Backup --- so I assume it did not complete. - I've also disabled putting the hard drive to sleep as suggested on another thread. Is there anything else I can try? I'm ready to take the Time Capsule back to the Apple Store and get a refund. I really looks more like a software issue, but the software never had these issues backing up to a firewire drive so I'm not sure what else I can try.