connecting IP camera to time capsule

The answer should be yes.. after all the TC is a wireless router.

If you wanted to use the TC to record events .. well that might not work.. and port forwarding can be a pain for remote access..

Just look up foscam with any airport.. all of them operate the same.. there is a lot more posts in the airport section about issues with webcams.

Follow the instructions provided with the foscam for connecting to a wireless router.

First you connect the foscam to the router using an ethernet cable. Then you do the setup as described using the "ip camera finder." Enter that address into your web browser and then you can change the settings on the camera to connect over the wifi.