So really u don't need anything for my printer which is good.
Correct!
So if I want to extend wifi what do I actually need.
You will need at least two AirPort base stations. Again these can be from any of the following: AirPort Extreme, Time Capsule, or AirPort Express.
I'm a bit confused re the external cd drive. I have got the apple one. You mentioned none of the apple base stations support external hard drive ... but then you mentuoned time capsule and extreme do
Just to make sure we are talking apples to apples (no pun intended), you mention an external CD drive. This would be a device that would read (& possibly write) to CDs. This would not be the same as an external hard drive. Although both are based on similar technology, they are completely different.
My comment is that none of the Apple networking products support attaching an external CD drive. However, both the AirPort Extreme & Time Capsule DO support an external USB hard drive.
is the base station a different thing.
Apple calls all of their networking routers, base stations ... thus the AirPort Extreme, AirPort Express, and the Time Capsule are all base stations. Sorry for any confusion.
If I get time capsule to back up data I presume that can connect as a client??? So I don't need to connect it to conputer.
The Time Capsule (TC) is basically an AirPort Extreme base station with an internal hard drive. It is primarily designed to operate as an Internet router, but can be reconfigured for other purposes. Any Mac on the same network as the TC can back up to it, either via a wired or wireless connection to that network.
My wifi is ok. Not overly strong so it would be good to extend it. Can the time capsule do both.
As mentioned earlier, if you want to extend the range of your network you will need at least two Apple base stations. A TC can be one of those two devices. What you will be setting up is called an "extended" network. Unfortunately, you cannot extend your non-Apple router with any of the base stations as they are not compatible. That is why you will need two of them.
In your case I would recommend the TC and the AirPort Express for the two base stations. The basic configuration would be that you would connect the TC directly to your existing Telstra device by Ethernet. The Express would be configured to extend the TC's wireless network per the link I provided earlier. You will also want to disable the Telstra's wireless network so that you won't be running two separate Wi-Fi networks ... unless you have a need to.
Im really sorry - like I said I'm new to apple and all these words but are keen to learn.
Don't be. We are all Apple product users, like you, here in the Apple Support Communities. We are all learning by helping others. Don't hesitate to post here and ask questions. To be more effective, just start a new post if the subject of your question changes so it will get the needed attention of other community members.