Time Capsule disk corruption issues? Base station firmware may fix it

This is actually an all round poor product, pricing and feature wise.
http://www.notascoolasitseems.com/component/search/Time+Capsule+.html

I've got the Dualband AEBS, and with 7.4.1 I have all kinds of problems. Range is severely limited compared to my older Netgear N Wireless router, 802.11g clients have a hard time connecting.

The network degrades after a day or so, network extension with AX doesn't work, time machine backups are painfully slow, and occasionally wiredclients can no longer acquire IP's from DHCP.

My wife has been getting Kernel Panics (Backupd) with Time Capsule with her MBA (10.5.6), however, I've not had a problem. Hopefully, this update addresses that.

For what its worth...
My time capsule was working fine until I did the 10.5.6 upgrade (but before the firmware upgrade). then it went south on me. i did a bunch of online research... tried "remounting" the drive, but to do that you need to fix errors (in apple disk utility). that didn't work. apple genius guys looked at it for a while but couldn't figure out what was going on so they gave me a new one. and it works fine now (both before and after the firmware upgrade).
one good thing that came out of all this is what was mentioned earlier that you can move time capsule images to external hard drives via the USB port.
otherwise, i love the time capsule and use it regularly for both backup and the occassional universal undo (used that functionality twice). Also kudos to apple genius customer support at the palo alto apple store. they are super friendly and helpful.

A number of people (myself included) are having trouble with the 7.4.1 firmware update and have downgraded to previous firmware. In my case, applying the 7.4.1 firmware made my home network invisible to some of my devices.

FYI for the curious, one of several Apple discussion threads on this:

http://discussions.apple.com/thread.jspa?threadID=1931959

Made things worse for me. My TC wouldn't back up, updated, still wouldn't back up - and then TM wouldn't back up to the usb hard drive I'd been using, telling me I didn't have write privileges. Gave up. Now my TC is a nice, but expensive, Airport.

It was my impression that my backups corrupted *after* I upgraded the firmware...

I wish Apple would better educate customers about the difference between "backing up" and "archiving".

Time Machine and Time Capsule are a good backup solution.
But it is far from permanent and reliable.
iDisk is also good but still not fool-proof.
Important files should be burned on DVDs and kept in multiple secure locations.