Time capsule + 1TB external HD and 2 macbookpros

How do I go about setting up Time Capsule for 2 notebooks? I have a printer attached to the USB port and have gotten a 1 TB HD and a powered USB hub. I'd like to put a 200 gb notebook on the Time Capsule and a 500 gb notebook on the 1 TB external drive. Presently, I've been running the small notebook on the TC but have just migrated the data on the HD to the 500 gb notebook. Can you suggest steps on how to go about this?

LannyRLevenson wrote:
I was running TC on the original 200 GB notebook
To avoid confusion, try to distinguish between Time Capsule (an Apple combination AirPort router and backup drive) and Time Machine (backup software).
but haven't used it with the external HD or the new 500 GB notebook. Should both notebooks be running (attached with ethernet cable) when I go to configure the TC to share the attached notebook over the network?
An initial Time Machine backup can run faster if it is run over an Ethernet cable rather than over Wi-Fi. I'm not sure what you mean by "share the attached notebook over the network". What is it about the "notebook" that you want to share and to what do you want to share it?
Where do I find "sparsebundle" file?
It should be on the network drive where Time Machine has been writing its backups. (Time Machine backups written to a locally-attached drive are named differently.)

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