backup failed, there is not enough space on time capsule

I did go to the apple site and erased the time capsule as suggested. I had previously tried to find this but when I used the airport utility, I clicked on the graphic, looked at the menu strip above and options were grayed out. I finally realised when I click on the graphic of the time capsule, there was a tiny edit option in the popup window that opened up the options including erasing (not very obvious, but glad I found it). I will limp along with the erased time capsule and plan my next hardware purchase to be an option for another hard drive which I would like to attach it to the network rather than an individual computer. Thanks for your help

Thanks for your suggestion. I like the information you included on the hardware recommendation. I would like to get something that has a network connection so I can backup multiple home computers to one unit and keep that unit off my desk. Any suggestions there?