Definitely not the way to do things.. wireless is slow relative to other methods of connection.
The TC has no means of backing itself up. So you will need to get a third party backup software.. as TM cannot backup network drives.
Moving the itunes library has to be done correctly..
Any other application like iphoto will have similar instructions..
But the TC starts slowly due to the green drive having rapid spin down times.. so you will often get errors that the library is not available..