How to connect Time Capsule wirelessly (without hard wire connection)

Okay, so just bought a Time Capsule, and in the process of setting it up, I am being told by Airport Utility that I need to hardwire the TC to my wireless router in order for it create a network.....
My question:  Is there anyway around this?  Is there anyway I can create an extended WiFi connection thru the TC without hardwiring?   I have a wifi extender (NetGear universal wifi range extender WGN3000) and was hoping that TC would connect to it and act as a second extender relay.
I hope my question is clear.
Also, is my understanding correct that if the TC is not hardwired, and it does not possess a wireless connection, then in order to backup my computer, I must connect to the basestation in Airport, and during that time I will be unable to use the internet??
THanks!!

We always say to people do the first backup by ethernet anyway.. wireless takes far too long.. once you are just doing incremental then it is ok by wireless.
But wireless halves in speed for every hop.. so make sure there is only ever one wireless link between the TC and the computer if at all possible. If you join it by wireless to the network.. you will have no gain.. and lots of pain.. plus half what are already poor speeds.. so you may as well just connect to the router by ethernet.. and bridge the TC.. you can then also setup wireless .. particularly 5ghz which the rest of your network probably doesn't use so you have a faster than normal link both to internet and TC for backup.. when you are in the same room.. link at 5ghz gives great speed and poor range.. go more than one room away and it will generally fall away to nothing.

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