Time Capsule - Unexpected Error - Try Again

I just purchased a Time Capsule with 2 TB. I cannot get the device to connect. I have tried soft reset and hard reset. I have checked that Airport Utility is updated. I cannot check firmware (that I know of) since I can't configure the T/C as a base station. I have no other base stations. The wireless network is active, but I can't configure it through the AirPort Utility.

Do anyone have an idea? Or do I just take the T/C back for an exchange?

Thanks for your suggestions.

Rich