My Book World Edition - Time Machine Compatible - False Advertising?

I bought a new “My Book World Edition” on the understanding that it would work with Time Machine on my MacBook Pro.  See attached image.

After adding the device to the network I can see it and add it to my machine - I can browse the drive etc… lovely.  Thing is, when I try add it as a drive to Time Machine (“Select Backup Drive”), Time Machine is not able to find it.  It appears as though Time Machine will only work with an AirPort wireless device, so I get an “… unable to find …” error message.

So… in what way exactly is my new “My Book World Edition” compatible with MacOS Time Machine?  Looks like I’ve just flushed 100 euro down the toilet if I can’t use it for the purpose for which I bought it.

Screen shot 2011-10-26 at 13.15.51.png

Question 1: What OS do you have? The MBW is not working well on Lion.

Question 2: What router do you have? If you have an Apple AirPort Extreme then I’d like to tell you that’s the worst router on earth for non-Apple devices.

I am having similar issues with my new, 4TB, “My Book World Edition II.” Set everything up, and it all seems to work decently, except when I go to setup Time Machine. It doesnt see it on the network for some reason.

I’m running OS X 10.7.2 Lion and have updated both the NAS and my MacBook Pro.

What the heck man.

As you can see from my sig, I have a MBWE and an AEBS, and Time Machine works just dandy so far from my Snow Leopard MacBook Pro.  As the other respondent indicated, it may be a Lion issue.  I don’t see why the router should make a difference, but *shrug* who’s to say?