Home setup - network switch and 2 Time Capsules

Question

I have an ADSL modem/router (Billion BIPAC 5200G). I have used it previously with wireless turned off. I then used a time capsule  in bridge mode so that NAT etc is turned off, and then use it to broadcast wifi and as a backup. It is attached to the modern with ethernet. It worked fine.
I am now in a house with a lot of ethernet ports, linked to a massive hub thing. But it needs a switch to link it all together.
So I am thinking of this setup:
PHONE LINE
to
BILLION ROUTER (Set as a router with wifi turned off)
to
NETWORK SWITCH
to
VARIOUS ethernet enabled devices in different rooms (i.e. printers, Apple TV, TV, Time capsule)
Then I want to use my 2nd time capsule to extend my ground floor network by plugging it in essentially directly into the time capsule via ethernet in roaming mode.
Is this the optimal setup for this? My other idea was to forgo the network switch and do it this way:
PHONE LINE
to
BILLION ROUTER (Set as a router with wifi turned off)
to
VARIOUS ethernet enabled devices INCLUDING the TIME CAPSULE and PRINTER.
then:
To the TIME CAPSULE:
to
VARIOUS ethernet enabled devices INCLUDING Imac, Apple TV and another TIME CAPSULE in roaming mode.
My main questions are: which setup will give me better speeds to all devices. Ie: is the switch even necessary? In my 2nd example, will the first time capsule and printer be available to the Imac.
There seems to be no real advantage to having the TIME CAPSULE in router mode while keeping the BILLION ROUTER as a pass through with NAT off (To avoid Double NAT) except for the guest network capabilities.
If its just simpler to have the network switch, then perhaps that's the way to go. If so: any suggestions on network switches that work well?

Answer 1

It doesn't allow me to select ethernet as an option for internet connection, only dchp, ppoe and one more which isn't ethernet.
DHCP is correct setting. .it will use ethernet but the new AC TC has problems.. it needs a crossover cable with some switches. Or you need to return it and get it replaced as there is something wrong with its wan port.. the new AC model needs a hardware revision and about 3 or 4 firmware upgrades before it hits the status of the Gen4 it replaced.
My questions are: should I connect my time capsules together directly with ethernet using another available port in my new time capsule. I thought my switch would work better. Also, does one time capsule have to be in router mode instead of having both of them in bridge.
Both should be in bridge.. but you can rearrange things to see if any of the other devices works better.
You can use the billion or the old TC.. plug the new TC into those.
Bob is correct though.. the switch is the correct thing for everything to be plugged into .. but in home situation what works is more important than what is best. It if fails in all of them then the WAN port is proven faulty.
Should I be able to use the hdd on the 2nd (older) time machine as essentially a networked hdd for putting movies and music on, and use my new time capsule as the sole backup (occurring both over ethernet for my iMac and wifi for our laptops)
Yes, that is ok.. you just need to get the AC version TC actually working properly.
Give us a few screenshots of things.. that really helps to see.
Click on each unit and show the summary pages.