I just took delivery of a new 3TB Time Capsule yesterday. I setup the device, including the disk portion. I'm sharing the drive with device password, which is in keychain. I setup Time Machine to use the device, and when the first backup begins, everything beachballs and freezes. If I leave the machine, I'll come back to a gray screen with a blinking folder in the center. I've quick-erased the drive a couple times and repeated this behavior. I thought I'd zero out the drive, but holy cow.. that process takes the router/wireless access point portion of the device offline for 7+ hours. That's a terrible software design. A couple of notes: I was previously using Time Machine just fine from a different internal drive in my (old) Mac Pro. I can seemingly read and write from/to the Time Capsule drive fine. Thoughts? Thanks.