Are there any risks to extending my wifi with a retired (1st Gen) Time Capsule?

I just replaced the Time Capsule as the hub of my wifi network. The only problem with the old TC (1st Generation I think) is that it didn't have enough storage, so it could be used again.  I can either sell it (not sure if there is a market for it), or I can use it to extend the network.  I already have an Airport Express extending the network at one end of my house. 
Is there any downside to setting up the old TC to extend the network at the other end of the house? 
Does the performance or throughput go down?
Thanks,

Bob,
Thanks for getting back to me.  I do appreciate it. 
So does this mean that the Airport Express that I use for iTunes, my AppleTV, my wireless HP printer and the Wifi interface to my DirecTV receiver are all causing a degradation in wireless performance?  I have noticed some performance issues, where I normally use my MB Pro, but I always thought that was a location problem.  We haven't had any problems with the AppleTV, and that's probably where the highest bandwidth requirements are.
I might be able to wire some or all of the devices, but it would be difficult, and it would probably mean buying some sort of Ethernet switch for one location.  The AppleTV, Airport Express and DirecTV are all in the same spot. We don't use the printer very often.

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