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We have two iPhone 4s, whichever one happens to be home connecting to FaceTime via our TimeCapsule, drops wifi every couple of minutes, ending the FaceTime call.
Both iPhones perform fine on a variety of hotel wifi and Airport Extremes that I manage for other family members. It only seems to happen at home on the TimeCapsule. The TimeCapsule is running the latest update and is on a 50Mb cable connection.
As soon as the connection drops, Im able to immediately select the WiFi network again and re-initiate the FaceTime call.
iOS 4 iPhone 4, TimeCapsule, lost WiFi connection