Storing iTunes media on Time Capsule to stream to ATV

Can someone please detail the steps I need to move my itunes movies and music to new Time Capsule.  I have done this and Apple TV is unable to recognize the library.
Here is what I've done so far:
1. Copied the iTunes music folder to the TC
2. Changed the library location to this folder in iTunes Preferences
Am I missing something?
Thanks!

Do you need to keep a local copy of your iTunes library for some reason? If not delete the local copy and keep only the copy on your Time Capsule.
Once this is done, on your Time Capsule, right click on your iTunes folder and select create an alias. Move this alias to your local Music folder and rename it iTunes (instead of "iTunes alias". That way your computer will think it plays the local copy but it will be redirected to the TC.
That's how mine is set up and it works good. I did the same with iPhoto

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