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Does using Time Machine on networked drives, affect performance?

Mr. Laser Beam

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For those not in the know, Time Machine is Apple's utility for performing backups on a regular basis. One of the allowed systems to use for a Time Machine backup is the Time Capsule, which is a combination wireless base station/networked hard drive.

My question is this: When Time Machine is used in this manner, with a Time Capsule networked drive, does this affect normal network use? For day-to-day Internet access? Has anyone used it in this manner, and if so, what did you find?

I have asked this question on Apple's discussion boards (and Googled it) but have so far found no answers.
 
In my experience, no, it doesn't affect it noticeably. But I would also recommend avoiding the Time Capsule, as they're utter crap.
 
^ We use one at my work, and it's nothing but a pain in the ass. Constant problems, and it usually needs to be completely reset every month or two or it'll stop working for no discernible reason. I've read plenty of stories about others having similar issues with it.
 
Out of curiosity, is that a problem specific to the Time Capsule application, or do you know if it might also afflict the basic Time Machine function as well?
 
I have a standard AirPort Extreme base station and have never had any problems with it. I wonder if Canadave's problems are the result of the station itself, or the Time Capsule part of it...
 
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