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I need to place my Time Capsule a fair distance from my ADSL router, and cannot easily run an Ethernet cable between the two. Can I use a pair of Powerline ethernet adaptors to make the connection? If so, any advice as to recommended make/model.

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Yes. From a network point of view, power line communication devices act like a bridge (or a switch, if they support more than 2 ends). That means they should act completely transparent (not accounting for transmission errors or other problems).

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No specific recommendations, but you should mention which country you're in, as the models (and standards) vary greatly, due to different sockets and power standards. –  Ingmar Hupp Sep 12 '11 at 18:26
    
I use the D-Link PowerLine AV Adapters. I'm in Canada and it's compatible with US as well. I get around 85Mbps over the power lines. –  user479 Sep 12 '11 at 22:18

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