Apple TV and Time Capsule

As far as I know, the AppleTV won't directly connect to the Time Capsule for storage or syncing. You can only use the Time Capsule as a network connection (either wired or wireless) for your AppleTV, the internal shared drive (from Time Capsule, or any other network storage for that matter) can't be seen.

Your best bet is probably to use the Time Capsule to back up your source machine (whichever computer you have iTunes installed on and your AppleTV is syncing from). If your running a Macintosh, Time Machine works well. If your on a PC, you can still access the Time Capsule as a networked hard drive and use whatever backup method your comfortable with (the Microsoft built-in backup software, some 3rd party software, or just drag-n-drop the files over there yourself on a regular basis).

There is a way to store your iTunes library on the Time Capsule itself, but it's not for the weak-hearted, and I'd only recommend it if your current library is about to outgrow your internal storage on your current computer - but that isn't the same as an Apple TV syncing directly from the Time Capsule - you'd still sync through your computer to the AppleTV. As far as I know, there's no good way to get around using iTunes on a computer to sync the content to an AppleTV.

I use my Time Capsule as the permanent repository for my MP4 movie files, which I use in iTunes and Apple TV. Here is how it works.

1. Make sure that your TC is paired as a network device on your computer.
2. Open up the TC in a Finder window and move to the folder in which the movie and music files for your Apple TV are stored.
3. Open up iTunes on your computer and make sure the Apple TV shows up as a device.
4. Select the files on your TC that you want the Apple TV to play and drag and drop them into the Music or Movie folder in iTunes while holding down the Apple and option keys. This creates small alias files on your computer but directs iTunes to the real files on your TC.
5. After the foregoing steps are taken, you can stream or sync the files from iTunes to your Apple TV just as if the actual music and movie files were stored in iTunes instead of on your TC. If you sync the files, the actual files will be copied to your Apple TV.

Good luck!

In iTunes, go to preferences and then click the advanced tab. You need to set your "itunes music folder location" to a folder on the TC and have all of your content there. This is what I do and it allows me to stream all of my TC content to my Apple Tv via this itunes folder. Your computer must be on with itunes open, there is no way around this. To access content without the computer on/itunes open, you can only access information synced on the apple tv. Hope this helps.

Ok, i'm having the same issue, here's how i got around it.

I have Over 200 Movies Stored on my TimeCapsule, i have an old Windows laptop, so i installed iTunes on it, changed the setting that copies the movie to computer off, but pointed my library location to the TimeCapsule, so everytime i add a movie, i put it in TC then add to library in iTunes. Shows all my 200 movies & plays great wireless, only skipping chapters & rewinding is a little slow, but for now it seems to be the only way to view over 200 movies on the list at the one time, thus not running out of HDD space on the Apple TV.

Hope this helps