TC solid AMBER LIGHT then dies. Apple won't help.

Over the weekend my time capsule powered off. When I tried to restart it, it went to a solid amber light for 15-30 seconds, and then died.
I unplugged it for half an hour, same problem, unplugged it overnight, same problem.
Soft reset won't work, hard reset won't work. Can't access it with ethernet.
Tried factory reset many times, solid amber light starts to blink, then when I release reset button (having held it for various amount of time) it goes solid amber, for a split second it sounds like it might start, then dies. No light. D E A D.
So, I've researched it online, and it seems a little different to the heat / power issue. I call Apple support, and the first tech just tries to order me a new one. My serial number 819 however prevents this. So a senior advisor comes on to tell me it can't be replaced. He get's cut off....
So I call back, and the tech reads the notes and basically tells me there is nothing that can be done, and is quite blasé about the whole thing. He offers me no advice and makes no attempt to diagnose the problem, just tells me it's done and I need to buy a new one as I don't have applecare.
I point out (nicely) it's only two years old, I expected more, it's supposed to be server grade, etc.
He replies "It's only a hard drive" which I found very interesting. ONLY A HARD DRIVE? So why did I pay $340 for it? He also tells me I should have backed up my back ups. So how many "server grade" back ups do I need to make? I need to buy 5 time capsules to back up my macbook incase 4 of them just give up suddenly? He also says that it's an electronic device and electronic devices fail. Just like that. May as well have just said "Tough luck, buddy!"
Later he tries to retract that statement and puts me through to another senior advisor. Predictably she tells me the same thing. No offer of repair or attempts to diagnose problem, just it's finished. She was as nice as she could be about it, but that's the conclusion. Eventually after I explained I was disappointed with this attitude, she said maybe I could take it to the genius bar to have the information taken off and moved to a new TC.
So basically, my new drive will be costing me in the region of $700 (given that my original $340 TC is only good for the trash).
My current thinking is I shall try and retrieve the data myself, use one of my other much, much cheaper external HD's that have been running flawlessly for years as a back up, and wait to see if Apple start to issue replacements for my serial number.
Ultimately I don't want a free replacement TC, I'd rather mine worked. I was expecting a better service, at least an attempt to make me feel like this was out of the ordinary, or they were concerned about me buying more Apple products in the future.... I was also expecting a server grade HD to last more than two years.....
Anyway, stepping off my soap box..... If anyone has any suggestions how I can get this going, or what the cause might be please before I try and retrieve the data myself.
Thanks!

I had the same problem while doing a backup.  My Capsule is a 2008 model, but an "818" in the serial number so it's not part of the recall.
THIS IS HOW I RETREIVED MY DATA FROM MY DEAD TIME CAPSULE:
Put time capsule in Zip-lock freezer bag and suck all the air out of the bag using a straw.
Put time capsule into deep freezer for a few hours. (the zip lock is to stop/reduce humidity on the electronics inside the capsule)
Remove from freezer, cross your fingers and plug it in.
On mine, after the solid yellow light went out, there was loud fans and lots of noise.  Let it boot for a couple minutes and either connect to it wireless/ethernet and start transferring your data.  Depending on how cold your freezer is (deep freeze is usually -18C/0F and house freezer is -9C/15F) will probably depend on how long the TC is up and running.  Mine ran for 45min straight, then i was done transferring and left it to see if it was fully operational again.  Checked back on it an hour later and the drive had stopped and the light was off...
You could even try to run it from inside the freezer as well...
GOOD LUCK!!

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