Best way to setup ATV with Time Capsule?

I just got an ATV for Christmas and I'm looking for the best way to set it up. I keep all my movies and music on my Time Capsule and have my iTunes reference it on my MacBook. When I first hooked up the ATV it only recognizes my media half the time and takes a rediculous amount of time loading any video. Does anyone have any suggestions on a better way to do this? If I connect a network car from my time capsule to ATv will this speed things up? Any info is appreciated.

The Time Capsule still has to talk to the iTunes Host over the network so actually yes the faster gigabit speed still does come into play. So one point to you too.
In my opinion though, the Time Capsule disk sharing feature lacks in speed because the processor in the Time Capsule is slow compared to using a real computer and that's true for almost any NAS device. Also, the Time Capsule is designed to put the hard drive to sleep way more often than on a computer so you often have to wait until the hard drive spins up when you want to use it.
If it is at all possible, use a USB hard drive externally attached directly to your computer for best performance if you need more storage. The NAS solution wasn't fast enough for me either so I switched to hanging a hard drive off my desktop Mac and have been happy ever since. Of course, if you use a laptop this won't be as practical of a solution.
Then again, I just realized you said it takes a "ridiculous" amount of time so that sounds more like a network issue than anything else. If you are fine with how long it takes for your Macbook to stream media attached to your Time Capsule then the Apple TV shouldn't be that much different.
Message was edited by: newagemac

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