After searching more about this problem, I learned that there are basically two options to solve this problem.
Option A
Daisy-Chaining an Airport Extreme adapter to the Time Capsule (a process that seems all-too-complicating for my taste).
If you're interested in this option, click below:
http://discussions.apple.com/thread.jspa?threadID=1431556&tstart=0
Airport Extreme - $99.00
Option B
Replacing your Microsoft Wireless Adapter with:
http://reviews.cnet.com/bridges/linksys-dual-band-wireless/4505-3304_7-32816755.html
$80.00 product
According to the testimony of a satisfied buyer on the apple support forums, you plug into your Time Capsule via Ethernet, and voila! instant gratification. Xbox 360 detects network, connects, and works flawlessly, with "better reception" - says the post.
Now, in my case, since both my younger brother and I have xbox 360's that i connect via stolen internet and microsoft adapter, and he connects via very long ethernet cable (which slows connection speed, in itself)... I think i'm going to go with buying the new adapter, since this way, I can sell the Microsoft Adapter, which refuses to connect to my Time Capsule (and many others), and both xboxes can run wirelessly, hassle-free.
I just thought I'd share this newfound information

Happy Hunting.