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First generation wireless router released in February 2008. The Apple Time Capsule model A1254 is a WiFi compatible router with internal storage.

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Are later model hard drives compatible with this model?

The hard drive on my Time Capsule has stopped working. I was able to backup the data but now I need to replace the broken one. Will the hard drives from other models be compatible with the first generation? If not is there a third party hard drive that will?

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Any hard drive with a working SATA port can connect and work as a storage device in your time capsule provided it is standard size or smaller. Replacing the drive is extremely easy and step by step instructions can be found in a future repair guide.

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What about formatting the new drive?

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The drive is able to be formatted via the time capsule software interface on your computer. All the settings on time capsule can be edited as long as you're connected to the device through a ethernet cable.

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This guide should help even if is for a newer model: Apple Time Capsule Model A1302 Hard Drive Replacement

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As an alternative to using a Time Capsule, investigate using a Raspberry Pi and a USB HDD. Check this out: https://www.youtube.com/watch?v=yJs8f0sp.... It will operate as a Time Capsule with Appleā€™s Time Machine backup program.

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Keaton Frahmann will be eternally grateful.
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