When you say you "Could not connect to Time Capsule", do you mean that you can't find the Wi-Fi network that the Time Capsule is creating under the AirPort menu bar item? If not, please explain what you mean. If so, it might help to reset the connection settings on your Mac using these steps one at a time until the problem is resolved, recognizing that, depending on your problem, not all of these steps will make sense:
1) Use the AirPort/Wi-Fi menu bar item to turn AirPort/Wi-Fi off, then on again.
2) Try to select your Wi-Fi network from the AirPort/Wi-Fi menu.
3) In the Network panel of System Preferences delete the AirPort/Wi-Fi item from the left column, then add it back.
4) In the same panel as (3), define a new location and see if you can make that work.
5) In the same panel, select the AirPort/Wi-Fi connection item, click the "Advanced" button, select the "TCP/IP" tab, then click "Renew DHCP Lease". Note that the fix this step implements may be temporary.
6) In the folder /Library/Preferences ( _not_ <yourhomefolder>/Library/Preferences), move the folder SystemConfiguration onto the Desktop, then restart your computer. See if you can now make your AirPort connection work.
These steps may not help, but they'll only take a couple of minutes to try. Before you try these, if you have any special network settings on your Mac for things like DSL credentials, note all your network settings, because the latter steps will destroy them. If you got all the way to the last step, if things don't work any worse than before, you can trash the saved SystemConfiguration folder.
When you say you "Could not connect to Time Capsule", do you mean that you can't find the Wi-Fi network that the Time Capsule is creating under the AirPort menu bar item? Yes I cant find anything that says Time Capsule, Time Machine or another Network other than my connection to my stero.
I tried 1,2,3,4,5 of the above & nothing happen.
Ive reset the Time Caplule & unpluged the modem & etc with no result. The status light just blinks amber.
Iv I take the Time Capsule to an Apple store would they be able to see if its working?
What you should see under the AirPort menu bar item is the name of the network that your Time Capsule is broadcasting.
What do you mean by "my connection to my stereo"?
Try connecting your Mac to the Time Capsule with an Ethernet cable to see if this allows AirPort Utility to "see" the Time Capsule and allow you determine why it's not happy.