I think that you're saying that the airport time capsule cannot be wirelessly connected to another non-Apple wireless router (via Ethernet).
I do not understand the bit in brackets..
The first part of the statement is 90% correct.. and as far as Apple is concerned is now 100% correct as they removed the options to join a wireless network. Whatever it is 100% not going to work in a dorm room without ethernet.. so that is for sure.
This is a little surprising since they both use standard 802.11a/n,
Wireless repeater .. which is what you want is not part of the IEEE standard since the days of WEP security. The fact that both devices use 802.11a/n is irrelevant.. they cannot join to each other by wireless. Unless you use WEP security.. because when WPA with rotating keys came in .. no method was devised to work out WDS with that system. Each manufacturer used their own system.
It is possible to use use a double link..
ie you need a wireless bridge.. that will pick up a wifi signal and give you ethernet connection. An airport express can do this. And no other apple router.
But any wireless bridge will do the same thing at half the price of an express. Still for Apple stuff an express is a neat combo.
Once you have ethernet.. you can then plug the Apple Router into that and run it as a secondary router.. You will then have double NAT (maybe triple NAT) issues.
College systems are designed to prevent people doing this. They will track down and do their best to stop people using wireless or any system that can interfere with wifi access for everyone.. you are not allowed to plug a router into their systems.. whether by wireless or ethernet. If you manage to bypass that.. which will depend on the policy of the place.. it is still an extremely messy setup. And will actually cause websites not to load and other issues long term.
Bob Timmons has given the method in his classic hotel room use wifi setup.
Will the airport express help with wifi in hotel rooms?
This is fine for travelling.. not so great for everyday.