Q: My time capsule isn't being located in airport.. what do i do?

I had the same problem, I think.  I tried to reset, etc.  No help.  I called apple care and the nice person, John, worked me through it.  First, he had me reset the time capsule, which I had tried but you need to hold the reset "pin" in until the status light on the front starts flashing fast - he said up to 10 seconds or so.  Then it should start to recognize the capsule and the light will go back to the slow amber flashing.  After that I still had to change some settings.  I have ATT DSL, and had to change from the default of PPPoE to DHCP, then there was something about NAT that I had to ignore.  At any rate, call apple care and hopefully they can walk you through it.  I am rather disappointed with this product's instructions since the sales person said it would basically install itself - NOT - and the instructions suck including any on line help.  However the Apple Care person was awesome.  Call them for help!