I love these kinds of questions..
Darren-n-Heather wrote:
What music formats does time capsule allow? (FLAC, WAV, AIFF, etc)
None.. TC is a dumb as a board (DAAB), hard disk inside a router.
What is the output for audio - i.e. usb1, usb2, FireWire, coaxial optical, etc?
None.. it is DAAB.. it has no media player.. it has no idea what you store on the hard disk.. there is no firewire, no optical.. usb is for printer or hard disk. The only apple product with all those things or even some of them is either a computer or Apple TV.. !
Can I control music selection from my iPad to this time capsule?
TC is DAAB.. it has no music to select..
If you store music on the TC the ipad can probably have an app installed to play it. But please do not move your itunes library to the TC.. that is asking for trouble.
Can I use TC without the main computer (iMac) off, but for the Blueray, iPad, MacBook?
NO, if you use TC as a file store.. being DAAB.. you need a computer to stream files to whatever.
Time Capsule is a router.. exactly the same as Airport Extreme.. with a hard disk.. it is designed purely for Time Machine backups.. it is not a reliable file store even.. it is not reliable enough nor does it have any automatic way to backup files stored on it.. Apple do not fix them.. they are a throw away item.. if it dies with all your files on it.. Apple will tell you it is for backups only therefore you have all your files still on your computers. It is slow as it is designed primarily not for ethernet connection but for wireless.
The only dedicated media player apple make is the Apple TV. Check it out for your requirements.. But the new v3 are far cheaper than older v2 which are selling for high prices now second hand.. because Apple stopped the JB.. so people could use them to play their files.. now it is almost totally an itunes device.. !!