Here's the sales literature:
Here is what Hardmac found on opening their new Time Capsule:
The reality is a Western Digital Caviar Green WD20EARS consumer hard drive. NOT a 'server-grade' hard drive. I like the WD20EARS drive, I have lots of them in use at the PC Doc HQ, but when I'm sold something 'server-grade' I expect something better.
It's not the fist time Apple's been naughty and called drives 'server-grade' when they weren't.