Time Capsule + Mountain Lion + Cable Modem = Unhappy

Greetings,
I have a frustrating networking issue that I *think* is related to Mountain Lion, but I'm not sure.  Here is the situation.
I have a cable modem connected to my Time Capsule.  It has been connected for more than 1 year with the same configuration and cables, and worked just fine.  I use the Time Capsule to connect my MacBook Air, iMac, a couple of iPhones/iPads, and several other wireless and wired network devices to the internet.
This week, I installed the Mountain Lion upgrade on my two macs.  I was able to download and install the update on both computers, but immediately after that, my Time Capsule and my Cable Modem will not connect to each other.
When I plug my MacBook Air directly into the Cable Modem it works fine.
When I plug the Time Capsule into the modem, it initially lets me connect to the internet for anywhere from few seconds to a minute or two, then I lose the internet.
Troubleshooting steps I've taken:
Power cycled the cable modem multiple times.
Power cycled the Time Capsule multiple times.
Reset Time Capsule to factory defaults and set it up from scratch as a new Time Capsule
Replaced ethernet cable between the two.
Tried OpenDNS servers instead of my cable provider DNS servers
Tried requesting new DHCP lease on Time Capsule, and it doesn't appear that anything changes.
Disconnected all other devices from the network, just the Time Capsule and the MacBook are connected
I've talked with my cable modem support.  They say everything with the cable modem is fine, it is the Time Capsule that is bad.
I've talked with Apple, and they say the Time Capsule is fine it is the cable modem that is bad.
Neither have been able to fix it!
I'm not 100% sure this is realated to the Mountain Lion upgrade.  Prior to the upgrade, I had noted my internet connection speeds had been erratic over the last couple of weeks.  I can't remember for sure, but think the Time Capsule did get a firmware upgrade a week or two ago.  I can't remember if that was when it started to act up or not.
Any Time Capsule/Network gurus out there who can help?  Have other Mountain Lion updaters had similar problems?

Update: I think I've pinpointed this problem to the Time Capsule.  I've replaced the Time Capsule with my Airport Express, and everything works flawlessly.  So:
Cable Modem -> MacBook Air (via ethernet cable) = Works fine
Cable Modem -> Airport Express -> MacBook Air = Works fine
Cable Modem -> Time Capsule -> MacBook Air = Doesn't work
I've reset the Time Capsule to factory defaults (holding down reset button while plugging in power) = no change
When I first plug the Time Capsule into the Cable Modem, I can get internet for few seconds.  But eventually the "Internet" status light in Airport Utility goes yellow and I can't access the internet at all.
It would be interesting to try a different cable modem with the Time Capsule but I don't have one.
Time to call Apple again I think.

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    Hi,
    My TC was working perfectly fine until 2 weeks ago...
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    I installed Mountain Lion on my oldest MacBook Pro (the newest has already Mountain Lion installed) 2 weeks ago. The installation was not straight forward... I tried to perform a clean installation, but I had difficulties with some applications.. anyway after a few days, everything went fine and smooth, I had to reconnect my TC with but it works fine, I could perform a few back-up with Time Machine.
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    * LaCie have really got my goat. Unlike other manufacturers who seem to be trying to provide support for their drives (Western Digital MyBook), LaCie have stated outright that they will not be providing any updates for their Big Disk Network. This is a hard drive they describe as a "Professional NAS", though I can't think of many professions where £200 backups need to be replaced every two years to keep abreast of security updates. In their defence, the drive is no longer manufactured… but, IMHO, I don't see that as sufficient reason to abandon all support or updates immediately. Boo! On the upside, loving my shiny new refurb Time Capsule.

    Our true genius died a little while ago.
    But up to Mountain Lion he has tones of info ..
    http://pondini.org/TM/Troubleshooting.html
    Try some of the section C solutions.
    It is more than likely network.
    BUT do the following.
    1. Install the widget A1
    2. Reset TM, A4
    3. Verify the backup, A5
    4. Reboot the whole network and restart it in order.. modem.. TC.. MB Air.
    No luck to this point.
    Tell us exactly what OS you have.
    The worst possible is Mavericks. If you are trying to connect to old backups after an upgrade it is hopeless.
    I recommend you start over.
    Simply wipe the TC and start afresh.
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