How I'd like backup to work...is it possible?

Hello,
I have an idea of how I'd like my Mac set-up to work, but after spending hours reading numerous reviews and blogs I've left feeling even more confused.
Set-up:
Mac Book Air 13-inch Mid 2011 (120GB SSD) Lion 10.7.4 - mine
Mac Book Pro 15-inch Late 2011 (750GB) Lion 10.7.3 - my partner's
What I'd like is an external hard drive/back up solution which does the following:
I use my MBA for my photography work and RAW picture files quickly fill up the 120GB. Also, when moving from my old PC laptop, I didn't bring half of my music onto this MBA as there just wasn't the space. So for my MBA, I'd like to be able to store my completed/processed photo files and my iTunes library on an external hard drive so my internal HD has more free space for projects I'm currently working on.
My partner uses the MBP for music and photo editting so again the files are big and important. With 750GB available, it's not as much of a problem having completed projects on the MBP, but it'd still be good to have completed on an external HD so there's more space for on-going projects.
We'd like to be able to do all this wireless if possible, in essence, the external HD/backup device plugged in 24-7, just able to grab files off as and when, then have Time Machine do it's thing and back up to it.
Reading about the Time Capsule it looks like it's really only for backup, not something you can go in and out of, editting and changing files...but I may have gotten the wrong impression from the reviews. It just seems everyone is only using it with Time Machine for backups, no one accessing files on a regular basis. Also, I live in Thailand and with our ISP True Online you receive a Wireless Router. I understand Time Capsule acts as a wireless router, however the back connection ports confuse me. There doesn't seem to be a smaller size port for the cable which runs from your telephone socket to the Time Capsule.
Does this mean you still need to use the wireless router from the ISP to connect from the phone socket? Then plug the Time Capsule into on of the Ethernet ports of the ISP Router? Wouldn't that then mean my house had 2 signals? One from the ISP router and one from the Time Capsule? I hope I've been as clear as possible, any suggestions would be greatly appreciated. We don't have an unlimited budget for this, but if something did the job, we'd probably spend a few hundred pounds on it. Thanks.

Reading about the Time Capsule it looks like it's really only for backup,
Correct .. it is designed as a backup target for Time Machine. it has no way to back itself up. If you store all those files on the TC it is easy as a voltage spike and you lose the whole lot.
If you buy a TC use it only for TM.. store your files in a true NAS or file server.
There doesn't seem to be a smaller size port for the cable which runs from your telephone socket to the Time Capsule. 
Does this mean you still need to use the wireless router from the ISP to connect from the phone socket? Then plug the Time Capsule into on of the Ethernet ports of the ISP Router? Wouldn't that then mean my house had 2 signals? One from the ISP router and one from the Time Capsule? I hope I've been as clear as possible, any suggestions would be greatly appreciated. We don't have an unlimited budget for this, but if something did the job, we'd probably spend a few hundred pounds on it. Thanks.
The TIme Capsule is a combined Router and hard disk. there is no modem.. you still need to use the existing modem at least and maybe the router as well. It depends on the type of adsl or vdsl you have.
The modem wireless can be turned off, or channels selected to allow both to work and not interfere with each other.
My suggestion is keep using the current modem router.. if it is not N wireless add an airport express or extreme to the network and turn off the wireless in the modem.
Buy a true NAS.. QNAP or SYNOLOGY are the major suppliers but there are secondary tier like Buffalo which may be popular there, Netgear, Thecus.. several others.. some offer full Mac and Time Machine support. They also offer raid profile disk and easy incremental backup. It sounds like you should get a technician to set it up for you.
Note also storing library files like itunes and iphoto which are accessed by wireless results in very slow performance.. the problem is your local drives are not large.. I don't really have a solution except some work would probably be better done on a desktop machine where you can have large internal and external drives directly connected. Backup will be even more important in your situation of using laptops.
I also am fearful of the Time Capsule in the heat.. unless you have an aircon room to put the TC.. it runs fairly hot in Iceland.. In Thailand.. you can probably fry eggs on it.

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