I will soon be getting a new 2TB Time Capsule. It will replace my existing Airport Extreme. Will installation of the Time Capsule involve resetting the Extreme to it’s factory settings and then configure the new router using the former router’s settings? Can my current Time Machine database be moved to the new Time Capsule? Finally, can I Configure the Airport Extreme to extend the range of the Time Capsule?
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Ray
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Time Capsule Configuration
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Basically, yes. You might save some time by noting all of your current router's settings, so you can quickly configure your new TC using them.
You can't easily move a backup from one drive to another. I would just set the current TM drive aside, then start a fresh new TM backup using the TC as your new drive. After a few days or weeks of backups you can then reuse that old drive for something else.
Yes, you can configure an AIrport Extreme to "Extend a network" if you want.