How to replace a Motorola NVG589 with a Time Capsule?

I have a few questions. Today ATT came and set up wireless for me. The only problem is they had to put my Wireless Gateway in a seperate room from my home theatre. I am experienceing a little bit of a slow down in my home theatre. Is there any way i completly get rid of my Motorola NVG589 and replace it with a Time Capsule? Once thats done if i set up an Airport Express in my home theatre can i connect the Airport to the Time Capsule wirelessly and then plug my apple tv and tv into the Airport Express' Ethernet port because my tv does not have built in wifi? and last question is can the Time Capsule function as just a wireless hard drive for my macbook and ipad without being set up for Time Machine? i appreciate any and all help. I understand computers but all this wireless/networking has me confused. Thanks again

You cannot replace the Motorola.. it is your modem plus other services.. but you could turn off wireless in it.. although even this is unnecessary as it is only single band. Set the channel in the motorola to say channel1 and forget about it.
Plug the TC in by ethernet and put it in bridge mode.
Set the TC to create a wireless network with whatever naming you want.
Once thats done if i set up an Airport Express in my home theatre can i connect the Airport to the Time Capsule wirelessly and then plug my apple tv and tv into the Airport Express' Ethernet port because my tv does not have built in wifi?
Yes, you can do that.. with the proviso the Express only has one ethernet port.. you can buy a small switch though .. 100mbit is fine as the express only uses fast ethernet.. but an extreme would be a better choice.
and last question is can the Time Capsule function as just a wireless hard drive for my macbook and ipad without being set up for Time Machine? i appreciate any and all help. I understand computers but all this wireless/networking has me confused. Thanks again
The answer here is yes.. but again heavy proviso.. it is slow,, it has no ability to backup itself and Time Machine cannot backup network drives. So if you do this take extra care to backup your files which will not be present on the computer or anywhere else.

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