- download the CreateBackupVolume application from Jon's excellent backmyfruitup project
- run it - tell it how big to make the sparse bundle thingy
- a sparse bundle file then gets created on your desktop (the name of the file starts with your machine name)
- mount your network drive if its not already
- drag the sparse bundle onto your network drive (you can delete the local one)
- set TimeMachine to use your network drive
- wait :)
Many thanks Jon! Using Time Machine with a network drive just got loads simpler!
Update: these instructions should work on any Mac with Time Machine, so it works just fine on Leopard too