Since upgrading to 10.6.1 (and possibly before) Snow Leopard has consistently failed to perform Time Machine backups to the Time Capsule on my network. The backup starts but quickly fails with the message “The backup was not performed because an error occurred while copying files to the backup disk.”

After rebooting both my laptop and Time Capsule, and even trying to create a fresh time machine image I finally discovered a way to fix this issue – downgrading to 7.4.1 of the Airport Extreme / Time Capsule firmware.

To do this open Airport Utility, hold down the “option” key on the keyboard and choose “BaseStation->Upload Firmware…” from the menu bar. You should now be able to downgrade your Time Capsule / Airport Extreme to previous firmware versions, and 7.4.1 works flawlessly with Time Machine / Snow Leopard 10.6.1 for me.

Hopefully this will save others from lots of head scratching :)