Airplay pausing with 1st gen time capsule

I'm using airplay to stream music from my MacBook Pro (mid 2010) to my apple TV and my stereo that's hooked up to an airport express. Airplay seems to stop and pause at random times (though according to iTunes, the music keeps playing). The streaming often, but not exlusively, stops when one of our computers is backing up to the time capsule.
I use a first generation time capsule to create my wireless network and I exted the network with my airport express. iTunes 11 and all my device firmwares are up to date.
Could my network settings on my time capsule cause the issue? Is the first gen time capsule simply too slow to create a fast enough network that can support airplay?

Thank you Sheila!
I read and implimented all the information in the links you posted. Unfortunately, it didn't solve my issue.
I used all the recomended setting for my Wi-Fi and even switched my wi-fi to use 5Ghz 802.11n. I also set my AirPort Express to join the network created by the time capsule instead of extending it. These two changes helped somewhat. All of the erratic unpredictable pauses in airplay were gone. After these changes, the only things that caused airplay pauses were Time Machine backups to the Time Capsule (on an external HD connected to the Time Capsule), and when I start up the AirPort Utility and it scannes my network.
Since then, I've bought another AirPort Express to send Airplay music to my living room stereo. To solve the Airplay issues I decided to have this AirPort Express create my Wi-Fi Network instead of the Time Capsule. This gave me a dual band Wi-Fi. I turned off the networking feature of the Time Capsule and connected it to the AirPort Express creating the wireless network using an ethernet cable. I also renamed my Time Capsule and it's HDs to names without spaces (as suggested by a few other posts).
Even after all of these modifications, airplay still skips every time a computer tries to backup to the Time Capsule as well as when the AirPort Utility is scanning the devices on the network. If I disconnect the Time Capsule I can go full days without a single airplay skip, but the minute I reconnect it and a backup occurs airplay just starts skipping like a bad record.
Why are backups to my Time Capsule causing airplay pauses? Would this also happen with a more recent Time Capsule model (I have a first generation model)? Is a new AirPort Express powerfull enough to create a home network capable of Airplay? Could the problem be due to the fact that the backup is done on an external HD attached to the Time Capsule?
Any help would be greatly appreciated!
Thanks,
Mathieu

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