Hey all - So I bought my 500GB Time Capsule when it was first released in Feb 2008. I heard about the power issues as of late but I didn't think much of it since my TC was running just as good as always. And then, out of nowhere last night, BAM, power goes off. Tried unplugging and plugging it back in multiple times with no response.
So, I immediately scheduled a Genius Bar appointment on my Apple Store App for the next day here in the Boston area. The Genius was aware of the issue and diagnosed the unit as failed but told me they had no replacement units and I'd have to wait 3-5 days for them to order one. I politely explained why that was a problem for me and asked for a new unit "off the shelf". The Genius explained that they can't do that since I'd be getting the newer 1TB dual band model in it's place (which I knew obviously) but that he would talk to the manager. 5 minutes later I was walking out of the store with a BRAND NEW Time Capsule that has double the storage space! No lengthy repairs and best of all, no lousy refurb that was once someone else's problem. I did have to sign a waiver stating that I knew this was a one time exception and they didn't allow me to keep the new box (just gave me the TC and cord out of the newly opened box) but overall I'm very happy with the swift resolution to this issue.