I had nothing but problems with 7.4.2. After months of struggling I just fixed my issue. I narrowed it down to an AFP issue by manually connecting my MAC to the TC via SMB. All my performance issues accessing quicktime/itunes files went away. I fixed access over AFP by:
After upgrading to firmware 7.4.2
Manually mounted the TC disk (finder -> GO -> Connect to Server...) Server Address: afp://timecapsulename.local (this was the trick) Set this to auto mount at login (System Preferences -> Accounts -> Login Items -> + -> Devices/YourMac/theTCvolume)
Cat, can you give an update? Is everything still working? What firmware is loaded? I too have a TC that I purchased not 45 days ago and it is having the problems mentioned here. I will exchange if I need to.
I *am not*, trying to be disrespectful, but it appears that you didn't understand how it works. If you look at that drop down box you're talking about it clearly says +Wireless Mode+ next to your three choices. That refers only to the wireless and not the ethernet.
7.4.2 has poorer range. Why would a software update cause that? Perhaps interference handling was broken somehow. Just a wild guess, based on the following.
My MacBook is 30 feet from the base station, in a residential area with several other WiFi base stations nearby. Under 7.3.2 and 7.4.1, the connection strength shows full bars, but under 7.4.2 it only shows 2 out of 4 bars, and the connection is frequently dropped. All the neighboring WiFi stations show fewer bars as well. This occurs no matter what channel I run on (including automatic). To prove that the only variable is the firmware version, I downgraded to 7.3.2. Connection strength increased, throughput increased, no dropped connections. Then I upgraded again to 7.4.2. Connection strength reduced, throughput reduced, many dropped connections.
So the solution seems to be: if you suffer slowness or frequent dropped connections under 7.4.2, downgrade to 7.4.1. If you have Windows XP machines on the network that are being dropped under 7.4.1, downgrade to 7.3.2.