I was playing fine last night and then this morning when I wanted to check on what Xur had I can't get in.
It loads up like normal, I go to the character select screen, and then after about 5 seconds It shows error code caterpillar.
"Lost connection to partner services".
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I was having the same problem. Make sure you're Wireless isn't close to other electronic devices or cable wires. Also make sure you keep you're wireless on high surface, put it on a stand or table, don't put it on the floor! What i did to fix this, i had to move my wireless to the another room to keep it away from other electronic equipment, and it worked! I stopped getting the Caterpillar message.