It is a basic question . What happens with wireless network if the Controller (4404) goes down ? . All APs will goes down also, or just the new users will not access the wireless network ?
As what Dan has mentioned, it depends on the firmware of the WLC. In the 4.X firmware, if the LAP can't find the WLC it will go into a Discovery-Join process, if it can't find a WLC, the LAP will reload and will continuously do this loop until a WLC is found.
If you only have one WLC, it's recommended you enable H-REAP. One of the benefits of H-REAP is that when the WLC goes down, the LAP will continue to operate on the proviso that you don't reload/reboot the LAP themselves.
This is really one of those it depends questions. If the AP's are in local mode and there isn't any other controllers available to join then the AP will go down. If there are other controllers available that the AP could join then it would move over to that controller and the outage would only be during the discovery/join process.
The other option is to have the AP's in H-REAP mode. When the AP's are in H-REAP mode they will keep chugging along even when the controller is down. There are some limitations here of course, but since the client's data traffic is locally switched at the AP traffic can still flow if the controller is down.