Although you can file share and play movies from a Time Capsule as advertised, the transcoding engine needs improvement. Avi/mp4s will stream seamlessly, however once you pay for the full version to stream Mkv, you see the shortcomings. Chop, stops, and enough lag for the audio to be almost 2sec behind the video. I stream to a iPad 3 from a 4th gen 2tb time capsule over wifi n. There should not be a problem. A valuable $5.00 lesson.
Herckules about Remote File Manager, v2.0.3