Not locking on to Time Capsule wireless signal

I have a Dell laptop with Windows XP and recently purchased a Time Capsule. The Time Capsule is set up, I created a wireless network, and I can "see" the network, but oscillates between connected and not connected. And is currently acquiring the IP address. But it has been going back and forth like this for over 30 minutes. It says "Unknown Authentication Status."
I've been trying to resolve for several weeks. I was using WPA2 encryption and I turned of the encryption after seeing a reply from Tesserax in a similar topic last year some time and I now have a solid connection. How can I get the encryption back on?
I also have a linksys wireless router included to support my vonage connection.

A lot of things can interfere with your signal. A cordless phone operating at 2.4 GHz, a microwave oven, or another nearby access point will affect your signal strength.

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    Message was edited by: Bob Timmons

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    Extending your network with an AirPort Express (AX) won't boost the TimeCapsule's (TC's) range per se. It will expand the network's range by adding another transceiver.
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    [Designing AirPort Networks 10.5-Windows manual|http://manuals.info.apple.com/enUS/Designing_AirPort_Networks10.5-Windows.pdf] is another good resource you may find helpful.

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    Can I copy my iTunes files and folders to Time Capsule wirelessly from my PC? I was wondering since my iTunes files and folders are connected to iTunes.

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