No shit the time capsules were faulty. Anything with a single hard disk and no fan is faulty by design (and fan boys still lap them up)…
Apple issued a support statement over the weekend regarding its Time Capsule data backup solution—some of them have been breaking well before they should. Models from between Feb and June 2008 can be replaced, free.
So now all you have to do it wait until 2015 for the iPhone4 to be fixed then.
via Gizmodo