In this instructable I'm going to show you how to crack this badboy open, remove your HD and rehouse it so that you can save at least a hundred bucks.
I bought my time capsule in '08 and it lasted longer than the 18 months many sites report to be the average lifespan. I did register it with timecapsuledead.org/, and that's where some of my research began.
Luckily Apple was kind enough to send me a new one(even though mine was out of warranty) and all they asked was that I send them my old one. Most people get this far and then fret because while getting a new one is great, their files are still on the old one. I can tell you firsthand your files are still there and still fine, the part that seems to break most often with time capsules is something related to power source. Mine went out when the power went out in my living room, but then never turned back on.
After politely explaining my predicament to apple, they re-arranged the order so that I could keep my old one, specifically to perform this experiment. Thank Apple!
I'm including my pics, much better pictures can be found here: www.flickr.com/photos/24254876@N03/2300920529/in/set-72157604011791554/
And here are much better instructions here : www.applefritter.com/node/23907