The Time Machine Works!
Check out this post from blog.payne.org:
Well, I can report that Time Machine (the new back-up & restore utility for Mac OS X) works. My 364 day old MacBook suffered a complete hard drive failure, only TWO hours after completing my first full backup. I hustled to the Apple store right away, so I didn’t miss my one-year warranty window.
(from: Involuntary test of Time Machine)
I will wait just a little longer before committing to Leopard. It's one of those, if it aint broke then don't fix it kind of situations…