2TB Time Capsule or External Hard Drive for use with Mac MINI and AppleTV

Hi,
My current setup is I have a 1TB Hard Drive linked to my intel Mac Mini via FireWire 400, the Mini shares my music and films through iTunes so that my AppleTV can pick them up.
All devices are connected to an AEBS 802.11n (early model) via Cat6 Gigabit cables.
As I have run out of space and am looking for a bigger drive, I wanted to know if I would be able to use the 2TB Time Capsule to hold my films and be able to stream them to the Mac Mini so that it may stream them through iTunes to the AppleTV.
The theory of if should work, as the devices are all Gigabit capable and connected by high quality Cat6 leads their shouldn't be network bandwith issues, I am just unsure of how quickly the TimeCapsule can read stored data from a hard drive and transmit, some of my films are HD and run 4GB plus.
The obvious answers is just to buy a bigger hard drive with FW400, however I would like to reduce the number of boxes I have under the TV, I plan to upgrade my AEBS to the latest one anyway so just thought it made sense to explore this option.
looking forward to hearing what you have to say.

Hello,
It should work in theory, but the disk access time of the TC is much slower. I was setup like you are with an external drive connected to a Mini via FW and I had true Gigabit transfer between computers.
When my hard drive failed I sold my Linksys gigabit router and bought a TC to reduce the number of boxes, but I soon learned that the read/write speed on a TC is a little bit faster than on a thumb drive! Not that great. All my machines are also connected with Cat6.
It's still OK to watch a movie though, but transferring 10+ Gb is a pain.

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