Disappointed with TCs wireless performance--help!

I have a 1TB Time Capsule which I believe has the same wireless part as the Airport Extreme and my wireless performance and range is surprisingly terrible. Is the Airport Extreme known to have a better wireless characteristic than the Time Capsule? Do you prefer it over the TC?
-When I use "N" only. I cannot connect just two rooms away with my MBP and my iPhone cannot use the signal...
-When I use the N (with B & G compatibility), the range is extended and I can use it in my other bedroom but videos streaming to my Apple TV (full DVD rips or EyeTV recordings) do not play reliably...
Also, I can only connect 3 ethernet devices to my TC... I would like to expand this. Should I use a different router and ethernet switch on the front line and use the TC for NAS an WAP (Wireless Access Point) only? What's your topology and what router do you recommend? I need about 5 ports.... also, if I'm using the TC or Airport as a WAP can I use the switch on that box in addition to the ones on the router?
Thanks,
Robert

The best wireless bandwidth performance available would be to operate the wireless in the 802.11n only (5 GHz) mode with both wide-channels enabled and with the radio channel set in the higher range (channels 149 -165 in the US).
I assume that you don't have the latest simultaneous dual-band version of the TC so in order to maintain that bandwidth, you would need a second AirPort, like an earlier 802.11g Extreme or Express to create a second wireless network for your non-"n" clients.
As you are already aware, the 5 GHz radio does not penetrate through walls as well as the lower frequency 2.4 GHz band nor has the distance.
The bottom line, for best HD (especially 1080p) streaming performance, you would need Gigabit Ethernet.

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