Using an Airport Extreme and a Time Capsule at the same time

Guys I have had an Airport Extreme and a Time Capsule running together for nearly a year now and over the last few days the TC has been behaving badly. I changed its settings and now I'm in a mess. No, I can't remember the previous settings
Does anyone have a definitive list of the settings I need please? I have an ethernet cable modem, and the Airport Extreme is plugged into that as the main router. Two computers and the Time Capsule are plugged into the Airport Extreme using ethernet. The Time Capsule at the moment is just used as a network drive for Time Machine, but at some point I want to move it, with a long ethernet cable, and use it for extending the wifi in the house.
1. Should I connect the TC using its WAN port or one of the other ethernet ports? At present it's one of the other ones.
2. What TC settings should I use to have it function purely as a hard drive? At the moment there's some kind of conflict and my internet connection drops every 30 minutes.
3. Then later, what settings will I need to get the ethernet connected TC to extend the range of my wifi?
I read the Apple doc about WDS and tried setting the TC up that way. Then I discovered there is no WDS option in the AE Wireless settings. Only "Create a wireless network" or "extend a wireless network". The same setting on the TC has these options: "Create a wireless network" "Participate in a WDS network" or "extend a wireless network". Both devices have firmware 7.5.2. It didn't work with only the TC set for WDS, of course, but after that I can't get it back the way it was - which wasn't reliable anyway
Any help in exactly what the Wireless and Internet settings should be would be massively useful. Thanks!

If you use the extreme as a router then the tc should be connected via its wan port to one of the lan ports on the extreme. Tc should be set up in bridge mode. Basically you could set it up to create another wireless network beside the one created by the extreme. There is no need to use WDS or extend the other network.
Use the same SSID and password for both machines. Computers will connect to the strongest signal.

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