Thanks for the info.
Check to make sure that the Ethernet cable is connected from one of the LAN <--> ports on the Actiontec modem/router to the WAN "O" port on the Time Capsule.
Then open up AirPort Utility and click on the Time Capsule picture, then click Edit in the smaller window that appears.
Click the Network tab at the top of the next window
Make sure that the setting for Router Mode is configured to read "Off (Bridge Mode)"
Click Update to save the changes and give the Time Capsule a full minute to restart....and you should have a green light on the Time Capsule.....indicating that it is set up correctly.
Now, power off both the Actiontec modem/router and the Time Capsule. Wait a minute, then start the Actiontec and let it run a full minute. Then, start the Time Capsule and let it run a minute. You should be in business.