What does a blinking yellow light on my 2TB Time Capsule indicate? Seems as if my WiFi is still working.
Check out Tesserax's Answer on the Apple Support Communities.
A persistent, flashing amber light indicates that any of the several potential conditions may require your attention:
- The base station has not yet been configured because it is new, or the reset switch has been set.
- You have selected a security configuration that is not recommended.
One of several other conditions, such as a disconnected Ethernet cable or invalid IP address has been detected. (ref: http://docs.info.apple.com/article.html?artnum=305101)
If you run the AirPort Utility, it will show an amber circle on the summary >page next to the area(s) causing the
problem. Click on this amber circle and it should provide an explanation.