Can I set a Timecapsule to connect to a wireless network, and hook up more network equipment to it with cables?

Question

Currently I have an older style Timecapsule 2GB, the flat type, connect to my cable modem, and distributing network to my apartment both through cables (Xbox, PS4, Apple TV) and WIFI (everything else).

I want to move this to a different room and in its place put a newer Airport Express thus having three base stations to provide wireless access to the network.

Reading the article leaves me with three concerns:

1. Move the Timecapsule to a different room and ask it to join the WIFI network set up by the Airport Express
2. Hook up nearby equipment (a computer and a NAS) to the Timecapsule, and thus spread the network to those units as well?
3. Still continue backing up my iMac and MacBook Pro to it, without changes (provided I keep its name)

I read this article: Wi-Fi base stations: Extending the range of your wireless network by adding additional Wi-Fi base stations and it has this section:

Wirelessly Extended Network (802.11n)

I understand the part about being nearby, but the webpage mentions base stations as the unit you can use to extend and I'm not sure if a time capsule counts as a "base station" as it also mentions other types, so my question is, with the above setup, and the existing time capsule being the unit on the right, can I hook up a computer and a NAS to it using cables, and access them while connected to the left apple router over WIFI?

The setup would be:

• Leftmost apple unit, connected to the cable modem with yellow cable, would server my Xbox, PS4, tables, MacBook Pro, iMac, using a combination of WIFI and cabled network
• Rightmost apple unit, old time capsule
• A server-like computer + a NAS connected to the time capsule using cables

So, in short - is the Time Capsule capable of working as a true Airport Base station?

Answer 1

Yes - Time Capsule is a fully functioning Airport and you can bridge, extend or perform any other function of Airport networking as needed without regards to there being a hard drive inside the unit.

You needn't worry about changing the network topology and having Macs not find the backup. Even if you actually change the name of the Time Capsule or change the password needed to mount the drive - once you remove the old "Time Capsule" backup as a destination from each Mac, you can add it back with the new name and/or password and the system will know it's the same volume and continue backing up just as it left off - no duplication or other ill effects will ensue due to you changing the names / networking.

I do exactly as you propose/describe with one change. I have a new AirPort Express that wirelessly extends (dotted lines) my network and I hard wire it (solid line) to the Time Capsule that used to provide wireless extension. I then turned off the wireless on the TC and run it in bridge mode (it's basically a gigabit ethernet switch now that provides three ethernet connections for two servers and a NAS) so that it's part of the network and still accessible as a backup volume.