Advice on airport time capsule to extreme

[rocksakar]

Guys need advice on how to setup my network...
i own three years old airport time capsule and recently i got airport extreme(newer model)..my question is how to setup my network..modem-timecapsule-extreme or modem-extreme-timecapsule.
currently i setup modem to time capsule in basemate and wired from capsule to extreme on first floor...
also i see that everything is trying connect to extreme even though i near to capsule....

 

[Altemose]

currently i setup modem to time capsule in basemate and wired from capsule to extreme on first floor...

Since the Extreme is newer and is capable of higher performance it should go modem --> AirPort Extreme --> AirPort Time Capsule in Bridge Mode. The Extreme should be in DHCP & NAT mode if the modem is a simple modem and not a router itself.