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Thread Starter 
I have a figured a way to utilize the Apple time capsule as a iTunes server…kinda... more like a alternate library file host.
I have 3 libraries now. Pressing option at iTunes startup lets you choose to create choose the library  you want.
library #1 regular music
            #2 classical music
            #3 24bit 192khz vinyl rips and high fidelity rips
I house the first two libraries on locally on my Macbook. The vinyl drive is on the time capsule. In iTunes, choose the library that you want to load by holding option like described above. Then in preferences change the library file path to the newly created directory on the time capsule. Drag the files from capsule into iTunes and voila!
Why not have the first two libraries as just one? Simple, the ratings of my songs if I select play top rated would combine classical with all my other genres. Less than ideal. All my audiophile rips are huge files so let the time capsule carry those as I don't need them when I am on the move, just sitting at home with the Duet2 and the D5000's!!! 

Edited by kungfuthug - 9/18/12 at 12:06pm