time capsule in extend the network mode

Yes......IF.....you already have another Apple wireless router that is providing the wireless signal that the Time Capsule will extend.

Performance wise, it would be much better if you could connect your main router to the Time Capsule using a permanent, wired Ethernet cable connection.

Have you performed a factory default reset on the Time Capsule and then used the "wizard" setup in AirPort Utility to configure the Time Capsule to extend a wireless network?

What operating system are you using on computer that is being used to set up and configure the Time Capsule?

A factory default reset will not affect the data on the Time Capsule hard drive in any way. It only resets the network settings on the Time Capsule so that it can be reconfigured again.

We can try a few other things first, but a factory default reset is usually required to get things working again when things are not working.

The newest operating system on the Mac is Yosemite......and it has a number of bugs. An iPad or iPhone....if you have one handy.....will do a better job of setting up the Time Capsule.

what settings should i put in this time around to allow my computer to get internet via wifi and not just ethernet?

Sorry, I am confused by this statement. Power off the Time Capsule completely for now. Can the Mac connect using wireless to the AirPort Extreme?

If it can, then it will also connect using wireless when the Time Capsule is set up again.

But....your original question was......if i put my time capsule in extend the network mode via the wifi, can i plug my xbox into the lan ethernet port on the time capsule and have it get access to the internet?

Can you please list all of he things that you want to do, assuming that the Time Capsule is operating correctly?

Before we try to set up the Time Capsule to "extend a wireless network", I would recommend that you first test the wireless connection quality where the Time Capsule will be located.

The Time Capsule can only "extend" the quality of wireless signal that it receives, and if it is too far away from the AirPort Extreme, things won't work.

If you have a Mac laptop and $5 to invest in a good wireless utility that will display SNR (Signal to Noise) accurately, it would be wise to first see what kind of signal that the Time Capsule will be receiving. (The "bars" at the top of the screen are worthless as far as determining signal quality.)

https://itunes.apple.com/us/app/wifi-scanner/id411680127?mt=12

Post back if you want to first determine what quality of signal that the Time Capsule will receive.

Power off the Time Capsule completely.

Install the application on your laptop, then temporarily turn off the wireless on the laptop.

Move the laptop to the exact point where the Time Capsule will be located.

Turn the wireless back on at the laptop

Open WiFi Scanner and let it run a few minutes. Click the SSID Details tab in the center of the window. Look for the SNR figure in the lower right hand corner of the display....and post back with the number that you see.

That is an outstanding SNR number, so the Time Capsule should work well in its current location. You did take this reading where the Time Capsule is located, correct?

40+ Superior

35 Excellent

30 Very Good

25 Good

20 Fair

15 Low

10 Very Low

5 Not usable