Apple today released “Time Machine and AirPort Updates v1.0″ which is recommended for all users and includes compatibility improvements for using Time Machine with Time Capsule, as well as AirPort driver fixes.

[UPDATE: 8:29pm EDT: Apple firmware update enables wireless Time Machine backup via Airport Extreme Base Station]

“Time Machine and AirPort Updates v1.0″ is available via Software Update and also as a standalone installer.

It requires Mac OS X 10.5.2 Client only.

More info and download link (10.4MB) here.