time capsule not creating folders

I setup time capsule with a external hard drive connected directly to my iMac and it created a backup folder with dated backup sub-folders. When I moved the drive to my AirPort Extreme router, I was able to get Time Capsule working but it now does not back up to the folders. I also setup Time Capsule to back up my MacBook and it does the same thing. No folders, only a "sparse bundle" file. How do I get it working like it did when it was connected directly?