Seems like this is making the rounds awfully late...
A number of the Apple news/rumor sites have talked about this in great detail, and I believe there are some discussions on the Apple discussion area.
One of the two that I have "under my control" has died. Its twin continues to soldier on. The power supply itself is OK (every capacitor tests good out of circuit, and the voltages are right on), but the heat spreader pads leaked a kind of oil all over the mainboard. I am pretty sure this is what killed it. The dead unit lived two months (!!!) past its warranty. Apple didn't want to hear about it when I called them, although they did suggest that I could turn it in via AppleCare if I had a system under that plan.
In any case, this hasn't been my first go-around with Time Capsule. Keeping it working to back up the computers it is supposed to be backing up has proven to be a chore. I've had systems that I never *could* get to backup reliably to the Apple TC.
Chances are good that if your Time Capsule dies, the hard drive inside is still good. Put it in an enclosure and it should be fine.
@James O'Shea - you might be interested in the stuff below:
What I'd suggest for anyone looking for an alternative--and the more technical audience to which The Register caters should not have any trouble getting this to work--is to use FreeNAS. The nightly builds of 0.7RC2 all have the ability to run an AFP service and advertise it to Macintosh clients over Bonjour. Put this on a low power (Intel Atom? VIA C7?) motherboard and watch it go.
It's been my experience over about two months of testing that this is very reliable. Hopefully nobody will mind if I post a link to my experiences: http://greyghost.mooo.com/timecapsule-vs-freenas/ (no ads, no malware, just the straight story)
Suffice it to say (if the link doesn't make it or you don't feel like taking the time), Time Capsule can't compete with FreeNAS even when it is running on...ancient...hardware. There is no comparison to the reliability of FreeNAS over Time Capsule.
..."Badger" sign because I think it is funny--nothing more nothing less.