This Post has been categorised with "iChat and iChat Sharing" but is plainly not about iChat.
Were you looking to categorise it with something else ?
I don't have a Time Capsule but I have used Time Machine over Wifi between a computer that did not have a Back Up drive connected and a computer that did (both computers were WiFi).
This method is very slow to backup even when doing hourly incremental ones.
A direct connection like you get in Firewire or USB 2.0 connections do tend to be "best" for Speed.
The Ethernet cable would normally go to the Modem you have
If you are not using a Browser with a PDF reader in it such as Safari then this will be a download.
This Set up guide shows a pic at the top with several Ethernet Ports.
Please, if posting Logs, do not post any Log info after the line "Binary Images for iChat"
iMac 2.5Ghz 5i 2011 (Mountain Lion 10.8.2)
G4/1GhzDual MDD (Leopard 10.5.8)
MacBookPro 2Gb (Snow Leopard 10.6.8)
Mac OS X (10.6.8),
Couple of iPhones and an iPad
"Limit the Logs to the Bits above Binary Images." No, Seriously