Should I create a new Wi Fi network or add Time Capsule to existing Wi FI network

I decided to buy a 3 TB Time Capsule rather than have a bunch of USB drives connected to my iMac (2010 3.2 GHz i3 running ML). I’ve noticed that when I have 3 USB drives connected, one always fails to mount.
I have a Netgear CG3100 Cable Modem on Telstra’s network.
The TC (located in a entertainment unit downstairs) connects to the Cable Modem via Ethernet (located upstairs).
Under ‘AirPort Utility’ Network menu, the Router Mode is: Off (Bridge Mode). This creates two Wi Fi networks (Netgear creates a Wireless-N network plus the TC network). I’m running AirPort Utility version 7.6.3.
Is this environment the ideal setup – Bridge Mode? Running ‘Speedtest.Net’ via my iPhone, both Wi Fi networks offered up to 30 Mbps. Although, I’ve noticed TM on some occasions to be significantly slower (maybe due Time Machine syncing via Ethernet???).
The following devices attach to the Network;
via Ethernet to Cable Modem, iMac, Ethernet Switch (for TV, Apple TV and Amp), TC (running off ports are TV, Apple TV and Amp) and,
via Wi Fi; iPads, iPhones, MacBook Pro and Windows laptop.
Network is used for all the usual stuff including Apple TV, Skype and VPN.
Ideally I don’t want to have to switch between the two Wi Fi networks. As the Cable Modem and TC are in different locations, one would expect the performance would vary depend on your proximity to each device. Ideally, you’d won’t to connect to the device with the best signal.
I’d appreciate any guidance on the best configuration for this environment.

I didn't roll back 5.6 but was able to get things working with Airport Utility7.6.3. I believe the problem may have been one of two things. The Wireless Settings for the Netgear CG310 had the following Security Option selected:  WPA-PSK [TKIP] + WPA2-PSK [AES].
So I selected just WPA2-PSK [AES] which matched the AirPort Utility Wireless Security option.
That appeared to fix the iMac. The MacBook Pro (MBP) still didn’t play ball. From the Network Preferences menu, I selected ‘Assist me’…re configured the wireless on the MBP. Followed the ‘Diagnostics…’ option ‘Choose network port configuration’ selecting WiFi…and that solved whatever voodoo was preventing the MBP from connecting to the WiFi network.
The 5GHz achieved a download speed of +60Mbps (speedtest.net), so I’m pretty happy with that!
The following images are now my setup so that my DSL/Cable Modem and TC have the same:
SSID
Security WPA2-PSK[AES]
Password
The TC Network Mode is 'Create a wireless networl'
The DSL/Cable Model is set to channel 1 and the TC is set to 11 for 2.4GHz and 36 fro 5GHz.
The TC Router Mode: Off (Bridge Mode)
Thanks LaPastenague & edex67for taking the time to assist me. I hope my experince will help others when they want to add a TC to their existing home network.

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