I am confused just how to set up my time capsule. Can it be used in place of the modem or is it just a wireless hub. I would like to get rid of the wireless router if it's do-able to keep the new setup as simple as possible.
The TC is a wireless router.. it has no modem..
So if you can bridge your current modem router, then you can use the TC in role of the router.
Otherwise just bridge the TC and it will be fine as WAP and switch.