Swapped out AE for TC and now can't connect to Internet!

Hello all.
I just swapped out an Airport Express base station (the square one, not the old spaceship-shaped one) for a shiny new 1-TB Time Capsule. I figured that since 500 GB external hard drive for Time Machine backups is running out of space, so why not just get a TC so I don't have to worry about (a) hard drive space or (b) plugging in external drives again.
I unplugged the AE and plugged in the TC. Everything else is the same: The TC is plugged into a Verizon DSL modem, and we have two MacBooks in our house. I configured the TC using the Airport Utility. Everything appears to be OK, except that I can't connect to the Internet any more.
I have tried some of the tricks that have worked for other people on this discussion board -- namely, unplugging the DSL modem and the TC and restarting them. They don't appear to work. When I put the old AE back, everything works like a charm.
Has anyone run into this problem before? I'd be grateful for advice and ideas. I don't want to use the TC as a secondary wireless network device, like a range extender. It's a pricey piece of equipment and it should do what it says on the box. I'm pretty sure that the fault lies somewhere between the DSL modem and the TC, but I'm not clever enough with these things to figure it out on my own.

Same problem....3 calls to tech support and almost another one yesterday UNTIL I discovered that re-setting the TC (with the paperclip tool!) worked. The Airport Network, via TC, recognizes my Network and TC pops up into the airport Utility. i kept "losing TC in the Airport Utility page....it only showed AE/Base Station...not waht I wanted.
I unplugged the Express (previous model,one that was prior to "X" capability, ie b/g) and left it unplugged.....this must be an issue) My ONE TO ONE instructors have offered to have a look at it, the AE,at my next appointment.
I, too, have a DSL modem (Qwest) that I have unplugged without success (connections) Unplugging the units seems to work for some things but not this particular problem.
Hope this helps.

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