Apple TC drops wifi but green light glows

I have a 2 TB Apple Time Capsule as my primary wireless router.  Recently the TC has started to not send out any Wifi signal at all.  All Wifi devices that are connected to it cannot even see the TC nor can the Airport Utility.  The green light continues to glow happly!  I can reset the device by unplugging and replugging the power, it then reconnects and everything works wonderfully until the next random time it happens.
I read some support threads that suggested fixing the WiFi channels as this may be happening when it switches channels, which I did.  The problem still occurs.
Any input?

If it is in warranty, I would certainly be looking to get Apple to replace it. It does sound like it is faulty.
Does the TC get hot? They can be warm to hot during a backup.. but with the disk spun down should not be over hot.. stick it up on feet.. the rubber base does not help much in getting rid of the heat unless you sit it on a chunk of copper or aluminum. Otherwise put a set of bottle tops / pencils / rubbers. whatever you can find to elevate it and allow air underneath.. you want it >8mm off the bench at least (about 0.3-0.5") Make sure it has plenty of air access around the sides and is not in a restricted access area where the local environment is heating up as well.
How long after each restart does it take to stop working? Is it a fairly consistent time.. ?? That could be helpful info.
Have you tried a full lock down of the wireless?
I am deeply suspicious of devices that auto everything.
So use SMB names.. short, no spaces pure alphanumeric.
Use a different name for 5ghz.
Use fixed channels which you are doing.
Use a fixed wireless mode.. this is not something we usually touch. But worth it in your testing.
Use WPA2 Personal security with 10-20 character pure alphanumeric passkey.
So normally something like this.
But now add radio mode into the mix.
This does reduce the wireless at 2.4ghz to G.. but it is just a test. See if wireless still drops out..
Does 5ghz also drop out at the same time? Since you can now force some of the devices to 5ghz.
if so I would be blaming hardware.
But iStumbler may show you more.
And the v5 utility can show you log info of the wireless clients.
You will need one computer linked by ethernet to get the chart when wireless drops naturally but you can also check the main log.
v5 utility being of course useful tool cf v6 useless toy.
To load v5 utility into ML.. do this.. although there are plenty of methods if you do a google for the info.
How to load 5.6 into ML.
1. Download 5.6 for Lion.
http://support.apple.com/kb/DL1482
Click to open the dmg but do not attempt to install the pkg.. it won't work anyway.
2. Download and install unpkg.
http://www.timdoug.com/unpkg/
Run unpkg on the desktop.. it is very simple.. drag the AirPortUtility56.pkg file over to unpkg.. and it will create a new directory of the same name on the desktop.. drill down.. applications utilities .. there lo and behold is Airport utility 5.6 .. drag it to your main utilities directory or just run it from current location.
You cannot uninstall 6.1 (now 6.2 if you updated) so don't try.. and you cannot or should not run them both at the same time.. so just ignore the toyland version.. the plastic hammer.. and start using 5.6.. a real tool.
For screen shots see this post.
https://discussions.apple.com/thread/4668746?tstart=0

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