Time Capsule can't set up as wireless network, but Airport Extreme works

I just bought a Time Capsule to use as a back-up hard drive and a wireless network. I currently have a Airport Extreme for my wireless network and it works fine. When I try to plug in the ethernet cable into the Time Capsule to set up a new wireless network - all I get is a blinking amber light on Time Capsule and Airport Utility can not find Time Capsule. When I plug the ethernet cable back into the Airport Extreme to see if my DSL is working - the Airport Extreme light is back on and I can connect to the internet. I updated the Time Capsule with the latest firmware so that's no it. Any ideas?

OK, thanks for the clarification.
First, make a note of the configuration settings in the Airport Extreme as you will likely set up the TC the same way. Open AirPort Utility, click on Manual Setup at the bottom of the pane and then click on the Airport icon at the top of the next page, which is a summary of your settings. Would be a good idea to write these down and keep them handy.
Then do a hard reset on the Time Capsule to get it back to factory defaults. You would do this by first pulling the power cable for a few minutes. Then using an unfolded paper clip or something small, hold in the reset button on the back while you plug the power cable back in and continue to hold the reset button for at least 10-12 seconds before you release it.
Power off your computer, then restart. When it's back up, connect an ethernet cable from the computer to the WAN port on the back of the Time Capsule. This should help Airport Utility "see" the Time Capsule so you use Airport Utility to configure it.
If you have set up the Extreme, the TC set up is basically the same unless you have changed the modem or some other things in your network.
Post back on your progress.

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  • Time Capsule in Standalone Mode with Existing Wireless Network

    Hi there,
    I hope someone can help. I'm not quite sure where to post this question, so I hope I am in the right place. Ive found various posts on this matter but just would like some assistance with my personal set up.
    I have a new retina MacBook Pro arriving soon which will be running Mountain Lion. I've also just purchased a current model Time Capsule for the purpose of wireless backups via Time Machine and would like some advice on how to integrate it into my system. 
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    This is really the same option as bridging the TC..
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    Don't worry if the above didn't make a lot of sense.
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    The wireless can indeed be left on.. even on both devices.. that isn't actually a problem.. although I prefer to set one or both routers to a fix wireless channel.
    You can also turn off the dlink wireless but I think you will find the dlink wireless rather better than the TC.
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    I do recommend you run 5.6 utility.. this is tricky as it won't install on mountain Lion.
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    http://support.apple.com/kb/DL1482
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    Try setting the wireless to manual and fixed channels.. the auto channel swapping does cause issues.. I would also give different names to 2.4ghz and 5ghz so you know clearly which wireless you are connected to.
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