My Time Capsule has stopped working. Restoring default settings does not work.

I have a 2TB Time Capsule (Model No. A1409). I think that it is approximately 20 months old. It has been working very well until around two months ago, when it began to display the flashing amber light. At that time I performed a hard reset, restoring the default settings. This worked and the capsule continued backing up perfectly for a further three weeks. However, about three weeks back the flashing amber light returned. As I have been busy elsewhere I was not able to attend to this untl recently. It does not seem to matter how many times I reset the device, I cannot return it to a working state.
The capsule has previously been set up to connect to the internet through my existing broadband service. As such, it was initially set up and subsequently restored wirelessly. I no longer seem to be able to achieve this. Has anybody else experienced similar difficulties and if so, were you able to remedy it.
Grateful for any advice. I feel another trip to the Genius Bar coming on.

Yeah absolutely - no problem.
I had the same thing happen where I did a restore on my personal TimeCapsule (TC),
and when I updated the device after installing it, it for some reason set the TC into bridged mode shutting off DHCP/NAT service.
Which means, that it doesn't reserve an IP for any client trying to attach. This is what it sounds like yours is doing.
So if you see that it says bridged, and that box with dhcp reservation is greyed out, change it from bridged to DHCP/NAT.
This will allow any client (computer/device) to attach and reserve an IP address for access to the internet.
Once that is set, and you update, hopefully the light should go green.
I would also recommend checking the "internet" tab, and making sure that your IP address is assigned using DHCP. (It probably is - but that part is essential for communication with your Internet Service Provider (ISP)...
SO - if the device goes green after the update:
If it does, then go back into the router and click on the wireless tab and confirm your wireless settings are correct, if any changes are made, update.
At that point, you should be able unplug your laptop to wirelessly connect to the router.

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Found this elsewhere so I will try it
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Click on Disconnect All Users
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I have an Apple Time Capsule which backs up by wireless. For the last 3 days it has not backed up. I get this message:
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Thanks,
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Mac Help says:
If you back up to a Time Capsule or network disk:
Open the Time Machine pane of System Preferences, and slide the switch to Off.
Open Time Machine preferences
Open Disk Utility, which is in the Utilities folder in the Applications folder.
Open Disk Utility
Make sure the Time Capsule or network disk is turned on and available.
Open a Finder window, select your Time Capsule or network disk in the Shared section of the sidebar, and click Connect. If necessary, enter your user name and password.
On the Time Capsule or network disk, select the disk or volume that contains Time Machine backups. Depending on how your Time Capsule is set up, there may be one or more disks or volumes.
Locate your backup, and drag it to the Disk Utility sidebar.You can identify your backup by looking for your computer’s name in the backup’s filename.

Hello,
Thanks to the great Pondini...
http://pondini.org/TM/C3.html

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~~~~~~~~~~~~~
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