Yeah it took a while, due to the disk formats as mentioned, TimeMachine only likes OS X formatted drives. So once I got all the drives to that format, which once again required moving of data, Then I stuffed up the dir-sync when using Chronosync, and got duplicates that I had to clean up. So that extended the time of setup.
But its now all good, Macbook, and local USB drive (HPF+) backup using TimeMachine to an external drive attached to the TimeCapsule. TimeCapsule internal drive used for Movies and TV files, and another External USB drive on the TimeCapsule used as a shared location for media such as photos for easy access from all Macs and PCs in the house. This data is synced via Chronosync to my local USB Drive, and included in the TimeMachine backup, Since this is the most important data its in three locations.