Today Apple retail unit sold me Airport Time Capsule. Now trying to install on my Mac which runs OSX10.6.8. Seems I should have newer OSX and Airport Utility version. What can I do please?

You do need Lion at least so you can download the latest v6 utility to do the setup.. without Lion or later you are stuck. The TC will work fine but you cannot do the setup to get it running. Do you have any idevice.. Apple released a version of airport utility for iOS 6 and greater that works very well to setup these later airports. No luck there.. do you have a friend with a laptop or iphone or ipad who could come and help you with the setup.. it will only require a few minutes.

Otherwise pack it up and return it.

You need OS X 10.7.5 or later. Most likely you can upgrade OS X on your iMac. You already have 10.6.8 and access to the App Store. If your computer qualifies to run Mavericks, then that is what you would upgrade to, otherwise, you would upgrade to Lion.

Upgrading to Lion

If your computer does not meet the requirements to install Mavericks, it may still meet the requirements to install Lion.

You can purchase Lion at the Online Apple Store. The cost is $19.99 (as it was before) plus tax. It's a download. You will get an email containing a redemption code that you then use at the Mac App Store to download Lion. Save a copy of that installer to your Downloads folder because the installer deletes itself at the end of the installation.

Lion System Requirements

1. Mac computer with an Intel Core 2 Duo, Core i3, Core i5, Core i7,

or Xeon processor

2. 2GB of memory

3. OS X v10.6.6 or later (v10.6.8 recommended)

4. 7GB of available space

5. Some features require an Apple ID; terms apply.

Upgrading to Mavericks

You can upgrade to Mavericks from Lion or directly from Snow Leopard. Mavericks can be downloaded from the Mac App Store for FREE.

Upgrading to Mavericks

To upgrade to Mavericks you must have Snow Leopard 10.6.8 or Lion installed. Download Mavericks from the App Store. Sign in using your Apple ID. Mavericks is free. The file is quite large, over 5 GBs, so allow some time to download. It would be preferable to use Ethernet because it is nearly four times faster than wireless.

OS X Mavericks- System Requirements

Macs that can be upgraded to OS X Mavericks

1. iMac (Mid 2007 or newer) - Model Identifier 7,1 or later

2. MacBook (Late 2008 Aluminum, or Early 2009 or newer) - Model Identifier 5,1 or later

3. MacBook Pro (Mid/Late 2007 or newer) - Model Identifier 3,1 or later

4. MacBook Air (Late 2008 or newer) - Model Identifier 2,1 or later

5. Mac mini (Early 2009 or newer) - Model Identifier 3,1 or later

6. Mac Pro (Early 2008 or newer) - Model Identifier 3,1 or later

7. Xserve (Early 2009) - Model Identifier 3,1 or later

To find the model identifier open System Profiler in the Utilities folder. It's displayed in the panel on the right.

Are my applications compatible?

See App Compatibility Table - RoaringApps.