Network mode: Create a wireless network vs. Extend wireless network via ethernet

Can some one tell me the difference between configuring AirPort Utility : Network mode: Create a wireless network vs. Extend wireless network via ethernet? I connect my cable modem to my Airport Time Capsule to a network switch via ethernet. The switch contacts to three Airport Express (AE connects to two  Apple TVs via Ethernet) and another TC. Which is the best mode to configure my network?
Thanks

Create a wireless network is used only when the Airports have an Ethernet connection. If you are using the setup wizard.....the setting will read Extend using Ethernet during the setup. If you go back in using AirPort Utility to check the Network Mode setting.....you will see that it is really Create a wireless network.
Extend a wireless network is used only if an AirPort is connecting to another AirPort using wireless.......not Ethernet.
Every one of the Airports on your network must be configured to Create a wireless network.
If you do connect an Ethernet cable to an AirPort that is already set up to Extend a wireless network......that will create a massive feedback loop that will crash the network until you remove the Ethernet connection to the device.
The bottom line here might be if you are using the setup wizard, it will make the correct choice for you.

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