Well, would you look at that. It seems as if Time Machine is all buddy-buddy with externally connected HDDs on Time Capsule after all. If you'll recall, many Apple users were miffed (to put it gently) by the disappearance of said feature from vanilla AirPort Extreme Base Stations just before Leopard hit the streets, but according to a hands-on report over at Macworld, "you can perform Time Machine backups to drives attached to the Time Capsule via USB." Granted, it wasn't exactly speedy or anything, but at least the functionality is tucked away in there -- hit up the read link if you're still spinning in disbelief.

[Via TUAW]

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Time Machine plays nice with USB HDDs on Time Capsule