I am having wireless connectivity issues with my time capsule

Over the last 3 days my wireless devices have been having issues with connectivity.
Network setup:
Modem - Motorola SB5102 Cable Modem
1 TB Time Capsule 802.11n (second generation)
The devices are approximately 3 feet apart.
Wired Device:
Mac Pro (2008 build) running OSX 10.6.8, Airport Utility 5.6.1
Wireless Devices:
Playstation 3
Macbook Air
iPhone 5c
iPhone 4
I am having issues with internet connectivity. The wireless signal strength is fine as all devices can find the network. However when connected to the network accessing the internet on the Macbook Air, or either iPhone is slow and streaming services such as Netflix cannot connect. I have intermitant connectivity to the Playstation Network on the PS3.
I have wired both the Macbook Air and PS3 directly to the Time Capsule and have no issues, internet is accessible and streaming services are fine.
I have power cycled all the devices (Time Capsule, macbook, iphones, PS3, modem) to no result.
I am looking for any other suggestions that may help me with my wireless connectivity issue.

A Gen2 TC is probably on its last gasp.. and it is well overdue for replacement.
If you want to get more life out of it you normally need to repair or replace the internal power supply.. This is not done by apple or any of their repair centres.
Just do ebay search and you will find sellers with replacement supplies.
Otherwise to test, do a full factory reset..
I would also downgrade the firmware.. 7.5.2 will work just as well for you and has less bugs than 7.6.x firmware.
To downgrade hold down the option key when you select firmware version.
The Factory Reset universal
Unplug your TC/AE. Hold in reset. and power the TC/AE back on..  all without releasing reset and keep holding in for about 10sec. The time is not important.. it is the front LED rapid flashing that indicates you are in factory mode.
Release reset.
If it doesn’t flash rapidly you have released reset at some point and try again.
Be Gentle! Feel the switch click on. It has a positive feel..  add no more pressure after that.
TC/AE will reboot after a couple of minutes with default factory settings and will wipe out previous configurations.
No files are deleted on the hard disk.. No reset of the TC deletes files.. to do that you use erase from the airport utility.

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