Having probs with TC - should I return it?

I'm having problems with our Time Capsule that I bought when I bought my first Mac (MBP) about 2 weeks ago. The internet is inconsistent and our netflix streaming on the wii has suffered badly for it. I went back to my old router finally and am seriously considering returning the TC. I would like to know which USB drives you think are best. I will be buying a backup drive probably only 1TB or less. I just don't know which you would recommend. Are there any other wireless hard drives out there that I could wirelessly back up to?

Any thoughts and opinions are welcome. Thanks.

Not much into wireless backups. I have two TCs (500GB 1st gen and 2TB 2nd gen) and an Airport Express, but don't use my TCs for wireless backup. One sits under my Mac Mini with a direct Ethernet connect and backs up the Mini. The other (2TB model) is my base router and acts as an NAS for central storage of iPhoto and other shared files.

Might be worth taking yours back for a swap as I have had good performance and reliability out of my Apple routers (had good performance but not good reliability when I used Linksys).

Regardless, my preferred and recommended main backup strategy is to have two inexpensive external USB drives and use Carbon Copy Cloner to make bootable clones. I swap them out peridiodically and keep one drive in a safe place separate from my Macs.

Well I found out what the problem was with the TC settings for the router. I was using google's DNS servers instead of the ones that my ISP uses. That was the issue, and apparently the only issue.

When I used google's dns servers (which I used to use on my linksys) i had no problems on the linksys, but internet was inconsistant and streaming on netflix on our Wii was a very frustrating experience.

I put in the dns servers that my ISP uses when I tried one last time to set up the TC and we have not had any problems streaming netflix or using the internet on our laptops since.

I do have a question though - do I need to set up a separate 5ghz network for my laptop since I use wireless N (MBP) or will the one single AP work fine for us all? The other laptops in the house (along with the wii) use wireless G.