I just got a Airport TimeCapsule
Is the Time Capsule tall shaped.....like a "tower"? Or, is the Time Capsule flat, shaped somewhat like a small pizza box with rounded corners?
If you have the tall or "tower" version, let's just say you have the "tower".
If you have one of the the much older flat versions, please look on the bottom of the device for the model number. It was usually embedded in the foam pad base. The model number starts with an "A" followed by 4 numbers.
Please post back the model number of the Time Capsule that you have.
Do I need to plug the WAN as well and put it as a bridge?
As it stands now, it sounds like you have connected an Ethernet cable from a LAN <--> port on your router to one of the three LAN <--> ports on the Time Capsule, correct?
That should work, but a better setup in theory would be to connect the Ethernet cable from your router to the WAN "O" port on the Time Capsule and then configure the Time Capsule to operate in Bridge Mode, which Apple calls "Off (Bridge Mode)" in the settings in AirPort Utility.
So, you would still have only one Ethernet cable connecting the Time Capsule to your router....not two.
You can leave your Mac connected to one of the LAN ports on the Time Capsule, no changes needed there.
Post back when you can and we will continue.