I have seen many posts regarding the Time Capsule and how it will not connect and/or perform a Time Machine backup once it has been configured. My problem is this: I have a refurbished 500gb Time Capsule (TC) with firmware 7.4.1. Initially, I updated the firmware to 7.4.2 (because I thought I should) and I had problems with the TC dropping it's connection as soon as the time machine backup began. I read last night that someone reverted the firmware back to 7.4 (I could only revert back to 7.4.1) and that solved the problem. It actually did solve the problem to some extent. After I unplugged the TC to reboot it and reverted the firmware back to 7.4.1, I was able the run the time machine backup to the TC. I though all was fine until I discovered this morning that the connection was once again, dropped. I know it is on channel 2 and I have read somewhere to use channel 9. Here are some other details about how I have it setup: I have an ethernet line coming into the TC from my cable modem I have an ethernet line coming out of the TC going into my 27" iMac I have the iMac's wireless network turned on I configured the TC as a wireless network I have an external USB 1Tb drive connected to the TC Can anyone offer any other suggestions on what to try ??