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Apple's description of the improvements is vague, stating only that it is recommended for all users and "includes compatibility improvements for using Time Machine with Time Capsule". It also includes AirPort driver fixes, none of which are specifically detailed.

The Time Machine and AirPort update is available from <

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Apple's website and through Software Update. The AirPort Utility used to administrate AirPort and Time Capsule hardware was updated only last week.

Since this update went live on Wednesday, other sites have reported that it allows Time Machine to back up to USB hard disks connected to an AirPort Extreme base station. This was listed as a feature of Leopard prior to its release, but was omitted from the latest version of Mac OS X when it was finally released in October.

UPDATE: Alongside the Time Machine and AirPort update, Apple has issued a new firmware (version 7.3.1) for Time Capsule, AirPort Extreme with 802.11n and the newly-released AirPort Express with 802.11n.

The firmware can be downloaded by launching AirPort Utility. If it does not automatically prompt you to download it, choose the option to check for updates in the application menu.