Network speed while a backup is happening with a TC?

1.) Using a N network with speeds supposedly up to 20mbps, what happens to the overall network speed when a first gen TC is backing up a Mac? Will it affect streaming Netflix? Playing Xbox Live? etc.?
2.) Where should I have the Cat6 cables connected to make sure it backs up as quickly as possible? Just from the Modem to the TC? I am also going to use an Extreme for a roaming network, so would I also need to have cat6 from the wall to the Extreme to make sure it is as fast as can be? Anywhere else?
Thanks!

1.) Using a N network with speeds supposedly up to 20mbps, what happens to the overall network speed when a first gen TC is backing up a Mac? Will it affect streaming Netflix? Playing Xbox Live? etc.?
Since backups and streaming must share the same overall bandwidth, there will be some loss of bandwidth to accomodate both happening simultaneously. Streaming from Netflix will NOT be affected from the ISP to the router, but may potentially be affected between the router and the Netflix host device. Same would hold true for the Xbox.
2.) Where should I have the Cat6 cables connected to make sure it backs up as quickly as possible? Just from the Modem to the TC?
First, you will only get Gigabit speeds if, as a minimum, the following are true: 1) All four pairs of wire within the cable are dedicated for data, 2) All ports have Gigabit interfaces, & 3) Ideally, all ports support Jumbo Frames.
Second, CAT-6 cabling is not required for Gigabit. CAT-5e is totally capable of handling the frequency rate for Gigabit. In fact, CAT-6 was designed to support up to 10 Gigabit networking. If; however, you can obtain CAT-6 at or near the same price point as CAT-5e, then there is nothing wrong with using CAT-6.
With that said, the 1st Gen TC does have Gigabit interfaces, but does support Jumbo Frames, so getting near Gigabit bandwidth will not be possible.
To provide the best bandwidth for backups, you will want a Gigabit Ethernet connection between the device being backed up to the TC.
I am also going to use an Extreme for a roaming network, so would I also need to have cat6 from the wall to the Extreme to make sure it is as fast as can be? Anywhere else?
You will want CAT-6 on the cable run in the wall between routers as well. You will also not want to share any of the four pairs of wires in these cables for other purposes, like phone service. It is common practice in newer house that come pre-wired to use Ethernet runs that terminate at a wall plate that provides both an Ethernet and phone jack. Typically, they will use the same cable and connect two of the pairs for Ethernet (the minimum required for 100 Mbps Ethernet) and connect one pair for phone service. Again, Gigabit Ethernet requires all four pairs to be dedicated to data.
(ref: SmallNetBuilder: Need To Know: Jumbo Frames in Small Networks)

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