Time Capsule woes -- Connection timeouts and can't connect with one Macbook

This is my second Time Capsule. Here's the scenario:
I have a Netopia 3347 DSL modem. That feeds into the Time Capsule in bridge mode. There is a MacBook (metal case), iBook (yes, it's old), two iphones, a color printer and an iPad that can all connect to the Time Capsule just fine. The problem is my MacBook can't connect. The offending computer is a 2.2Ghz Intel Core 2 Duo running SL 10.6.6. This computer can connect to the Netopia just fine, so I know its internal Airport works. After several go arounds with Apple tech support, I'm still nowhere.
Here are the symptoms:
1. I can see the TC's network SSID in the airport pull down menu. If I select the TC, a popup appears and asks for a password. If I enter the password, I'll get a connection timeout error.
2. On the rare occasions where it does connect, I can't open a webpage. Network diagnostics has red dots for ISP Internet and Server
3. On the even rarer occasions where it does connect, and I can access a webpage, it's unbearably slow, and the no-surf problem reappears after a few seconds. The red dots on the Network Diagnostics reappear.
Apple tech support was not helpful. I've power cycled everything a million times (and that doesn't explain why other computers can connect.) I know it's not my computer, because it can connect to the Netopia just fine.
I am STUMPED.

Magnificent! Problem solved...   Isn't there a "this solved my problem" button somewhere??  Thanks and thanks again!

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