Apple has announced that it is now replacing or repairing, free of charge, Time Capsules purchased roughly between February 2008 and June 2008 that exhibit certain power failures. These failures include not powering on, or shutting down unexpectedly after startup. A recent Knowledge Base article has more information on how to identify whether your Time Capsule has a qualifying serial number, how to arrange for Apple to retrieve data from your device, and how to receive a refund for a previously paid repair or replacement.
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