Time Capsule won't setup?

Join is lousy way to work the TC.. it is hidden because Apple don't want you to use it.

If you have great wireless network in the house.. there is no need to use the TC next to the computer.. you gain nothing.. and it works poorly..

Plug into the TC with ethernet.. press and hold reset..

Turn off wireless and set the TC to bridge.. ie connection sharing off.. or later version of AU.. NAT off.

Plug it into the main router with ethernet.

You can now access it using your existing wireless network.. at least twice as fast as the join wireless network.

What actual version of OS are you running?? Your first post lists 10.5.8 but most people forget to update it.

The airport utility is hugely different between Snow and Lion.. In fact for Lion download and install the old version.

http://support.apple.com/kb/DL1482

For Mountain Lion you are stuck.

Open the utility, manual setup, internet tab and on that page, at the bottom, connection sharing.. and select off bridge mode..

For v6 I will need to locate specifics.. I do not use it.

For ethernet cable, go to any large computer store and ask for cat6 patch cable of whatever length (and colour) suits you. I almost cannot believe anybody in our world today has not bought ethernet cable.

I see.. I think I missed a couple of points in the first post.. like you bought a TC to transfer files..

You can do it with one $5 ethernet cable.. plug into both computers.. set IP manually.. copy direct.

Or none at all, since you must currently have a wireless network.. to which you were attempting to join the TC.. have you actually looked up networking in Mac environment.

http://support.apple.com/kb/HT1549?viewlocale=en_US

If you can pack up the TC and return it.. that is what I would do... unless you are going to use it for backing up.. or wireless networking it is useless to you beyond that single task.

How do you get internet now??

If each computer is connected to a router with wireless.. it will be slow but you don't even need ethernet.. but if you bought two patch leads.. and have a 4 port modem router you can pass files between the 2 computers.. you can do that with the TC as well.. before you return it.

Patch lead is a short and flexible ethernet cable.. you use to patch computers to routers etc

Don't even look like you don't understand.. walk into the computer shop..

Say.. "I want a 2M (6' in US) cat 6 patch cable please.. hmmm what colour do you have available??"

Change length according to taste.

Apple have restrictions on iTunes which are basically licensed to a single user.. they designed the system to prevent people simply copying it to somebody else.

Read the instructions on iTunes or post in the itunes area what you want to achieve.. it is specific to itunes..

You can copy your documents files.. That should be trivial exercise..

You already have a network.. you simply have never used it for anything except internet. Sorry I cannot give you a tutorial on Mac networking.. Google is your friend.. there are plenty of great tuts around the place.

Or go to a class and learn the specifics of networking.