same problem here.
i have a time capsule.
symptoms:
excessively searching for network
but more often than not, it cant find the correct netowrk that is correctly stored in keychain
if i try network assistant opened through safari not finding its page, then it can find the right network after i enter in the password again. it connects. but only for a few seconds then it loses the connection again.
the only fool proof workaround for me is:
1/ shut down time capsule. restart time capsule.
2/ restart mac with airport turned off.
3/ after restart manually select the network from the wireless icon in the menu bar
airport utility is a complete waste of time
old airport utility is still better.