I have just bought an airport capsule 2t

It is installed and working on the ground floor with my iPhone/ Macbook pro etc, but wont find the airport upstairs, that used to work, wirelessly. Any ideas. When I link them with a cable they work. It seems to be the wireless range is worse with the new device??

wireless is voodoo technology.. you need an adequate offering of chicken livers to the gods of ether as you do science. What you discovered is not unusual.. for some people the new ones are better.. for some the same.. for plenty of people worse.. It depends on so many factors.
I recommend you manually set wireless channels and a different name for 5ghz.. high speed is really only on the 5ghz band.
Test a range of channels and see if anything works better.
Or keep your old wireless router as a WAP and that allows you to continue to get signal upstairs.. better still if it is apple router you can extend wireless from the new TC.. to get signal in the dark (wifi point of view) area.

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