Brad,
Again, best to start a new thread if you wish for responses to your particular issue. Again, here is the procedure...
*Reformat the TC Hard Disk*
You can reformat the hard disk in the Time Capsule.
Go to Airport Utility --> Manual Setup --> Disks --> Highlight "Time Capsule Disk" on the left --> Click "Erase" on the right.
Rename the disk and select the level secure erasure. You're done and ready to begin backing up again.
I would suggest connecting the TC directly to your Mac via ethernet. Your initial full backup will go much faster and doesn't fail nearly as often as trying to do it wirelessly. “If you have an Ethernet cable, you can perform your first backup to your Time Capsule via Ethernet; this will allow for the fastest initial backup especially with client computers that use 802.11b or 802.11g.”
http://support.apple.com/kb/HT1176
Glenn