Using Time Machine with a Time Capsule

P1.  "The backup disk image could not be created."

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If you get this message when
backing-up to a network drive, check your Computer Name at the top of the System Preferences > Sharing panel.

It must not be blank;  it should not be more than 25 characters long;  and you should avoid punctuation and special characters (even though OSX may use some when it makes the default name when you first set up a Mac).

After changing it, if the LocalHostname didn't change automatically, click the Edit button and make the corresponding change to it.

Apply the same rules to
the name of your Time Capsule via Airport Utility:

Note: if you're using Airport Utility 5.6.x, click your Time Capsule in the sidebar and click Manual Setup at the bottom.  You'll find similar windows.

Apply the same rules to
the name of your Network via the Wireless tab:

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