My current setup consists of an Apple Time Capsule as our wireless router. I have an external hard drive with all my movies and TV shows on it connected to the Time Capsule via USB. Sometimes when I playback the video on a Mac Mini or another computer altogether (via the Wi-Fi) the picture can get all pixelated and freeze. I then usually have to transfer my files off the external HD onto whatever computer I'm watching them on so they play smoothly. Is there any "smoother" way to set this up?
Some more details:
The Time Capsule's memory is too small for me to transfer all my videos to it. (Although I am open to buying a new bigger 3TB one if that will solve my issues.)
I watch the videos using VLC. The formats are usually AVI, MP4, and MKV.
I watch on a 2009 Mac Mini hooked up to a TV, a (not the newest but last years model) MacBook Air, a 2 year old Gateway PC, and a late 2012 iMac.
I'm guessing the problem is streaming off a USB device over Wi-Fi, I'm just not 100% certain on the speeds. What is the speed of USB 2.0, Wi-Fi 802.11n, and average playback speeds of the above formats (I know this depends on how it was created).