Time Capsule randomly decides to stop working

Ever since I upgraded my Time Capsule to firmware 7.4.1, it has been acting up. After days (sometimes weeks) of use, all of the sudden I am not connected to the internet anymore. My iMac is plugged directly into the TC and I still get no connection. Airport Utility doesn't even find the TC yet the status light is green. My other wireless devices (Dell Mini 9, iPhone) can find the network but when I try to connect, it times out. The only way to fix the problem is to unplug the TC from its power source and plug it back in. This all started months ago when the new firmware became available. I thought it may be the firmware so I reverted back to the previous version. I never had the disconnecting problem while using the old firmware. But after about a week of using the old firmware, my status light flashes orange telling me the firmware needs to be updated. This doesn't effect my ability to connect to the internet but it does get annoying seeing that light flash. The only way I have found to make the light stop flashing is to reset the TC in Airport Utility.
So I had been using the old firmware up until last week. I was getting tired of resetting the TC over and over so I decided to upgrade the firmware back to the most current version. Everything was working great for about a week until today. The old problem is still there. After some searching on these forums, it does seem that others are experiencing the same issues as i am, yet there doesn't seem to be a definite answer to the problem. Does anyone know why this is happening? Do you think I just have a bad TC? Somebody please help!!

I started having the exact same problem this morning. My Time Capsule has dropped off both the wired and wireless LANs twice in the past five hours. Each time when I open the Airport Utility is says the machine is reporting a problem. When I click continue, it cannot find any device (this is from a machine connected directly to the Time Capsule) or a network. When I go back to physically check the device (it's on a high shelf near the center of my house), both the Time Capsule and my DSL modem are showing green lights. If I unplug the Time Capsule, wait a few seconds, and then plug it back in, it goes through a normal start-up cycle and then behaves as if nothing has happened. This is extremely annoying in a device that I've only had for 54 weeks.

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