If you read my last post, you will see how did I set up the drive on Mac, so that I can access it, even though it will not appear on your system as a mounted drive. If you are now able to access the folders the next step is to set it up as a time machine.
There are crude ways of doing it and then there is a very easy way of doing it. I will list the easy way first but if you want to do it the hard way you can do it. All you have to do is to download the automator script and run it. When it asks for the size of the time capsule, just specify the capacity that you want to use. For instance, if your hard disk is 1 TB and you want to use all of it you can definitely use it. This script will create a file (sparsebundle) on your desktop. You need to copy this file to one of the folders on your network drive. To access these folders go to "Go -> Network" and copy this to any of the folders.