1- Can i erase the time capsule to start from scratch? if yes, how do i do this (in basic terms & easy instructions!)
Yes, this is easily accomplished.
Open Macintosh HD > Applications > Utilities > AirPort Utility
Click on the Time Capsule icon
In the small box that appears, click Edit
Click the Disks tab at the top of the next window
Click Erase Disk
Choose the Quick Erase option if you plan to keep the Time Capsule yourself
This will only take a minute or two
Close the AirPort Utility window when you are done
2- if i erase the time capsule will this delete the internet network that was setup?
No. Your network settings on the Time Capsule will not be affected in any way.
Thanks so much Bob, worked a treat.
In a silly followup question. I have deleted files off my external hard drive but it is still showing the space as being used. If i erase the free space will the free it up for use? Some people have suggested i empty my trash with the drive connected, but this doesnt work. i have about 700GB used on a 1TB hard drive and dont want to lose my files!!