Your Apple Time Capsule has died. You are now faced with the difficult, but important, need to mourn.
To show that you were not alone in this process, we opened the Apple Time Capsule Memorial Register on October 10, 2009.
Back when the Register was opened, Apple refused to replace Time Capsules that were out of warranty for people who did not have AppleCare on any of their computers. Fortunately, Apple changed their policy halfway November 2009 and offered replacements for pretty much everyone who called them.
UPDATE: On june 9, 2010, Apple posted a Knowledge Base article with information about failing Time Capsules and their repair or replacement.
On the 15th of February 2010, we reached 2500 registered dead Time Capsules and then closed the Register for new submissions. You can read more about it.
You may want to visit our Now what? page with as many details on this matter as we could gather.
From early December onwards, we asked everyone who has registered to tell us what happened. Their feedback is shown as little symbols in the register:
A replacement was offered, under AppleCare
A replacement was offered, eventhough out of warranty
Apple refused to replace this Time Capsule
The owner did not take action to get this Time Capsule replaced
Totalling 2500 fallen Time Capsules as of 15-Feb-2010 15:50 GMT + 0200