if the time capsule is less then 2 years old and you have a applecare covered computer, its still under warranty!!
is it possible that you have the older time capsules that have been given free secret warranties because of faulty power supplies??
Is Your Time Capsule Eligible?
However, with the widespread complaints of spotty performance, including randomly shutting off or not turning on at all, Apple has announced that they will extend warranties for certain serial numbers that are affected. If your Time Capsule’s serial number is in the range of XX807XXXXXX XX814XXXXXX and was purchased between February and June of 2008, you may be eligible for a repair or replacement. This, of course, is only a possibility if your Time Capsule is experiencing the described issues.
If your Time Capsule is experiencing these issues and falls in the serial number range and time frame of purchase, there are numerous ways of submitting it to Apple. The most timely approach would be to take your Time Capsule to your local Apple Retail Store or Apple Authorized Service Provider.