Can the Time Capsule be used as iTunes library?

I want to buy one, but only if I can put all my music files on it and play them on iTunes wirelessly through my computer and add them to my iPhone and iPod from it?
Is this possible or do i still have to plug in an external hard drive?
I'm a new yorker and trying to eliminate having so many wires in my apartment...
Thanks in adavance

Richard Austin Garlic wrote:
Just bought a 1TB TC and have tried to copy movie files (50+GB) to TC and then redirect where these movies are in iTunes, Preferences, Advanced. Went to ATV and tried to stream to my HDTV. Unable to do so. Also, does TC have to be active as a logged in Network in Finder? (I have not deleted these files on iTunes yet.) Also, what method should one use to move movies to TC?
You have to move the library from within iTunes, not just simply move the files in finder.
Yes, of course the TC must be connected and running. It will show under "shared" in finder.

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