Can I use Time Capsule for backing up MacBook Pro on OSX10.4 & for a new MacAir & how would I do this?

I have a MacBook Pro on OSX10.4. I want to back up all my files & iphotos before I buy & install new OSX. I also want to get the portability of a new Mac Air. But, I have no idea how to back up & I'm finding all the information on Time Capsule & different hard drives confusing. I want 'one' external hard drive only - what will meet my basic needs?

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