Can Time Capsule be used as wireless extender?

Can a single airport utility (Time Capsule 2TB) be used as a wireless range extender, like the wireless, remotely-located, plug-in models (Netgear, Linksys, etc)?

Yes and no.

Yes, if the Time Capsule will be connecting to a network that is provided by another Apple wireless router.

Most likely no, if the Time Capsule will be connecting to a third party wireless router.......since Apple has designed their "extend" feature to be proprietary....and only work with other Apple routers. There might be some compatible routers out there that will work.....but I have yet to find one.

With a Fios router, you will need to plan to connect the Time Capsule using a permanent, wired Ethernet cable connection.

If you cannot run the Ethernet cable, a pair of Ethernet over Powerline adapters might be able to send the signal over the existing AC wiring in your home. The theory with these devices is that you already have the wiring in place......you just need the adapters.