I hope this helps you...I just spent 3 hours on the phone with Apple Care and finally got the problem fixed. The problem was the NAME OF THE time capsule. I had used "Tony Ry*****'s Time Capsule" (I used xxxxx because I prefer not to use my whole last name on here). In any event, the name was too long! I changed it to "TimeCapsule" in Airport Utility. To do this, launch Airport Utility, click on "Manual Setup". Under the "Disks" section, you will see the name of your time capsule listed under "Time Capsule Disk" . Click on that, and to the right a white dialogue box will appear where you can change the name. Change it to something short with no spaces, or " ' " . After doing that you will need to go into the time machine preferences and select a new backup disk (since you changed the name). This worked perfect for me. Hope it helps you!