Does Time Capsule mean that backup up to NAS will work?

Forgive me if I have it wrong, but I seem to remember hearing that Time Machine beta supporting backing up to network drives but that functionality was pulled due to various problems in the production release of Time Machine. With the new Time Capsule combination of an Airport Extreme base station with a 500GB/1TB drive does that mean that there will be an update to allow Time Machine to backup to any networked drive or will it have to be the Time Capsule network drive? Or, does anyone know yet?
Thanks for any insight or information you might have.

To follow up on my earlier post/comment/question -
a long long time ago, and far far away, likely before most of the readers of this were even born, there was a place/company/entity/idea called IBM.
During my days in graduate school I was a programmer/designer/analyst for several local firms in the town where I went to school. One of my clients had a System 3 - running RPG with a network of 3270's.
Now most of you will have no idea of what a 3270 is but suffice it to say that those of us who had to deal with these monsters, before CICS and before BMS, using Modified Data Tags (MDT) and Set Buffer Addresses (SBA) were the real Right Stuff. And that's when a "Green Card" meant something - and even more if you were privileged enough to have a "Yellow Card - SOC7 and SRL meant the end of the world. Today any coding claim for GUI, HTML, JAVA or whatever pales in its insignificance.
Well, on with my story.
So one day we ordered an "upgrade" to our Printer. Our printer was a 300 lpm (that's Lines Per Minute) that, due to increased business volume, we wanted to "upgrade" to 600 lpm. Back in those days you either leased or purchased (with a service contract) all of your "stuff" from computers to typewriters with Selectric Elements fom IBM.
So on the appointed/anointed day the IBM person (they were called either SE's for System Engineers or TSR for Technical Support Representative) arrived and I greeted him at the door.
Figuring that an upgrade to a behemoth line printer would be an extensive task, I noticed that he was carrying only a miniscule case. I had expected him to install a new motor, a new power supply, and to replace the print chain (a long connected circular wraparound band that contained several rows of all printable characters) which I was certain that although it could stand up to a force of 300 lpm that it would have to be retired and replaced in order to withstand the pounding of 600 lpm.
The IBM rep had a bag smaller than Marcus Welby's.
He approached the printer, pushed the button to raise the cover, didn't even turn the printer off, gently removed one gear, and pushed the button that closed the cover.
Our "upgrade" was there all of the time -we just needed to have someone "deinstall our previously installed downgrade"
My point - an "upgrade" doesn't necessarily mean "adding" - especially if the functionality was already there.
So ---- what did Apple "turn on" to get the Time Thing to work???
Or what did they turn off?
FYI - I a running a Mac Book, a Mac Book Pro, a PB G4 with an AEBS connected to a USB disk, along with a Buffalo Link Station Live and Time Machine works fine, has been since early November, backing up to the USB disk connected to the AEBS and to the Link Station.
Comments and Q welcome.
Thank you.

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