Extending Wireless Network Is Crippling Data Speeds - Time Capsule 802.11ac

Just set up a new Time Capsule (3TB ac) to replace my older 2TB dual-band TC. I had successfully been running a network with another dual-band Airport Extreme (bought this year/the model before current one) extending from the older TC.
Now when I extend the network using my new TC and the same, older AE, the whole networks grinds down severely. Most times, pages dont even start to load for 10-20 seconds, and then I watch the load up slowly.  Testing the speed on Speedtest, the data seems to stop and start a few times, sometimes peaking at around 30Mbpsm but the rate is all over the place.
The second I turn the wireless Network Mode to "Off" on the AE, the system comes right back up and Im getting my constant 60 Mbps.
Im up to date on all firmware.
Running OSX 10.9
This is a days old iMac 27" i7
Something seems seriously wrong here and Im at a loss for figuring it out. I was hoping the new range of the TCs would allow me to get rid of the extending AE altogether, but even in my modest sized home, the network is sketchy from the opposite end of the house. So unfortunately, Im going to have to figure something out here. I really hoping the answer isnt to buy a new AE with ac.

You are aware that you must completely reset a cable modem whenever you change the device that is connected to the modem, correct?
The cable modem may need a power down period of up to 30 minutes, sometimes longer.
The reason for this is that the cable modem associates with the first device that it connects with. If you connect another device, the cable modem "remembers" and "looks" for the old device. When it does not see it....because it is no there.....it refuses to give out an IP address to the "new" device.
The trick is make the cable modem "forget" the original device, so it will associate with a new device.
If you want to try the 802.11ac product, see this excellent User Tip provided by forum expert Tesserax for the correct setup.
                 AirPort - Complete Power Recycle

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