I ran the DNS-323 in RAID-0 with a pair of 500GB WD drives for a year, which should have been less robust than RAID-1. I never had any issues with filesystem integrity, then I converted it to RAID-1 when I got larger drives, a pair of Seagate 1.5TB drives.
Since I got my Synology, I have been running both the DNS-321 and DNS-323 with a single 1.5TB drive using EXT3, so far they've worked fine with that configuration. I have a pair of Seagate 1.5TB drives in the Synology running EXT3 and RAID-1.
As far as reliability, I can't say I'm unhappy with the D-Link NAS boxes, the DNS-323 is almost three years old, and it's never failed me. The DNS-321 is about a year and a half, so far so good with that one as well.
I don't use Time Machine, but according to Synology, it's supported: http://www.synology.com/us/solutions/backup/time_machine/time_machine.php