I have a similar question as Nicole. I've been trying to work this out for a days now reading everything I can find and my head is swimming.
I have a wireless dsl router/modem that was provided by my phone company (Fairpoint).
I have attached my Time Capsule via ethernet from the WAN port to one of the LAN ports on the dsl modem.
I disabled wireless on the dsl modem via access to my dsl router online.
I also have the ability to change the access point to either access point or wireless bridge on the dsl (right now I have it on access point and bridge restrict enabled - but I'm not really sure what these mean).
I set up the Time Capsule by "create a wireless network" and set the network router mode to: off (Bridge Mode) using airport utility.
My security set on the Time Capsule is WPA2, but the security on the dsl modem is set to WPA-PSK (I don't have this security option on the Time Capsule).
I have also extended the network by attaching an airport extreme base station and an airport express (which is attached to my printer). I have a large home and needed a way to reach other areas of the house to make for a stronger and hopefully fast wifi.
I find that my connection speed varies a lot... and slowws way down intermittently.
I also have my imac connected via ethernet to the wall (which is wired through the house).
I also have a macbook pro that I like to use wirelessly.
Do I have everything set up correctly or have I done something I am not allowed to do? Have I made a "double hop" that you speak of above?
I'm suppose to have 12 mbps download speed/1mbps upload. I am not getting anywhere near these speeds. Just now I got 0.69 mb/s download and upload 1.0mb/s
I'm in desperate need of any suggestions?