There are two thoughts that I have about this. One, there have been known issues with the AEBS and external drive connectivity. I'm not sure how well these so-called issues hold up but even people who considered the Time Capsule over their current windows network drives and such knew of the issues of hooking an external up to the AEBS. I think Time Capsule is worth it if you need network storage and hopefully it would be less buggy, but my only question was whether or not you can upgrade or replace the hard drive should something happen to it. If you cannot then the AEBS and a separate drive is a better decision in my opinion.