Just as a precaution, if any of you use the apple time capsule to back up your projects and other data, I should make a back up now!
My time capsule (March 08 vintage) died earlier last week.
From messages on the apple TC forums it would appear that the capacitors in the internal power supply are failing probably due to overheating because of the poor ventilation design after approx 18 months.
Apparently the drive is fine, if removed into an external caddy.
Apple have refused to replace mine since it is out of warranty.
Others have had them replaced under apple care, although no data recovery was made available.