Adding 2nd TC, Can I go wireless to Ethernet?

My TC pooped out about 2 months ago. Apple sent me a refurbished one, and after much drama I actually got backups going again (don't ask). Surprisingly, they didn't want the old one back. So, now I have a TC in need of a power supply (surgery to be attempted real soon!) and an XBOX in my den that is begging for XBMC on it. So, my question is: Can I extend my wireless network to the 2nd TC in the den and then use the Ethernet to connect the XBOX?

It's this or another Apple TV, as my wife is tired of me stealing it from her! I just don't want to wire the whole house for Ethernet. Everything else we own is N-wireless, and when I break down and buy a new TV and Blu-Ray player, it will be wireless as well.

Happy New Year, and thanks!

Yes you can. I believe you have to go into Airport Utility and set it up in Bridged mode. I have mine set up this way so that my XBox360, DVR and Security Camera PC have connectivity to the wireless network via my Time Capsule which is located in my entertainment center.

Yes, you can, and yes, I did!

I used a PC power supply to repair my TC, and I now have Ethernet connectivity in my living room!

Now I just need to order a proper 5V/12V power supply and get rid of the brick sitting behind my television.