Migrating from old time capsule to a new one

I have a new Time Capsule (4th gen, 2TB) that I want to replace my old Time Capsule (3rd gen, 2TB).
(The rationale is that I was splitting the original between time machine backups and shared home media but it had become full and performance was sluggish despite the auto-deletion of oldest backups.  Instead of getting a USB drive for the other media I decided to upgrade my main TC to the newest version but keep the 3rd Gen just for the media.)
What I'm looking for is a simple explanation for how to set up my new TC to replace my old one.  The manual isn't clear on this and I can't find a clear thread on the discussion that mirrors my situation.
My guess is that I need to follow these steps:
- initialise the new TC as (just) an external HD to my Mac
- deactivate time machine then copy the sparsebundles to the new TC
- set up the new TC in network router mode
- deactivate the network router mode on my old TC
- swap the new TC for the old TC
- reactivate time machine and point it towards the new network drive
My first question that I'd be grateful for answers to is: is the above correct or would you propose a different approach for any reason?
My second question is how do I then re-mount the old TC as a shared network drive
- can it connect by wifi or do I need to connect it by ethernet or USB to the 'new' TC?
- I assume I can simply delete the old sparsebundle files and repoint iTunes to access the media
Many thanks for your time in responding!

Alot of your steps depend on the first one which is wrong.. sorry.. you cannot use the TC as external HD.. it is now and forever a network drive.
That being the case.. let me suggest the following order.
- deactivate TM.. yes that stops messy things happening.
- setup the new TC to do all the functions of the existing one. The easiest way to do this is simply pull the old one out the network and install the new one.. otherwise you are trying to make two network connections to the two TC which will by default have the same IP. This will depend though on if you normally use ethernet. Do you?? I will suggest it another way if that is the case.
- Factory reset the old TC.. and then set it in bridge mode and plug it into the new TC by ethernet.
- Make sure all the network connections are full gigabit speed. If you are going to copy the old TM across this is going to take maybe a day or more.. assuming you have the 1TB drive full. TC cannot copy from one to the other direct.. it has to go.. TC1-Computer-TC2. which halves the speed.
Do you really need these old backups.. IMHO it is better.. much better.. to start a fresh TM backup. You can get a USB drive to offload the existing backups using the direct archive method.. although you will need the old 5.6 utility to do it.
- Copying sparsebundles is not hard.. just time consuming. See Q18 with every combo of doing this.
http://pondini.org/TM/FAQ.html
- Then you can erase the old TC and load your media on it.. remembering that the TC has no way to back itself up.. and TM cannot backup a network drive.. so if you store itunes library for instance on it.. and access it by wireless.. except that at some stage it will corrupt itself. Count on it. Make sure you have a backup.
- reactivate TM if you did indeed move the old sparsebundle.. and point it to the right target disk.

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    Cesare Cerutti wrote:
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    tomath2o wrote:
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    Message was edited by: Pondini

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    Message was edited by: Iwannhs

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