A backup appliance that works seamlessly with Time Machine to automatically and wirelessly back up everything on one or more Macs running Mac OS X Leopard, Time Capsule combines an 802.11n base station with a server grade hard disk in one small package. “Bring Time Capsule home, plug it in, click a few buttons on your Macs and voilà—all the Macs in your house are being backed up automatically, every hour of every day,” said Steve Jobs, Apple’s CEO. When it ships in February, Time Capsule will be available in models featuring 500GB and 1TB hard drives for $299 and $499, respectively.

iPhone Software Update 1.1.3, a free software update available today via iTunes 7.5 or later, brings significant new features to iPhone. After installing the update, iPhone customers will be able to automatically find their location using the redesigned Maps application; text message multiple people in one message; create Web Clips for their favorite websites; customize their home screen; and watch movies rented from the new iTunes Movie Rentals right on their iPhone.

With the installation of this major software upgrade, the best iPod becomes even more: the world’s best Wi-Fi mobile device. The upgrade—available from iTunes for just $19.99—adds five more great mobile applications to iPod touch: Mail, Maps, Stocks, Weather, and Notes. It also includes such new features as Web Clips, a customizable home screen, and the ability to watch iTunes Movie Rentals on iPod touch.

Available today with the free download of iTunes 7.6, iTunes Movie Rentals allows customers to rent movies for as little as $2.99 and watch them on their Macs or PCs, all current generation iPods, iPhone and Apple TV. Featuring movies from all the major movie studios—20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount, Universal Studios Home Entertainment, Sony Pictures Entertainment, Metro-Goldwyn-Mayer (MGM), Lionsgate and New Line Cinema—iTunes Movie Rentals is expected to offer more than 1,000 movie titles by the end of February, including over 100 titles featuring stunning high definition video with 5.1 Dolby Digital surround sound. Movies can be rented directly from a widescreen TV using Apple TV.

In advance of Apple’s 3G iPhone announcement, Citigroup believes the new version of the device could be surfacing within four months. According to AppleInsider, analyst Rich Garder came to the conclus…