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I own an Apple Time Capsule and wanted to know for FIOS internet to work correctley what settings do I put under "Wireless" and for "Network"?
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In terms of setting it up as a wireless access point? If so, then it needs to be hardwired to your FiOS router and set in "Bridge Mode" first. Then you can make the wireless network name whatever you wish.
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Also either disable wifi on your Verizon router or make sure you set the channels of the wifi on both devices as far apart as possible.
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why am I not able to do "extend network" instead of "create new network" I tried the extend network option but won't connect why is that?
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The extend network option works when you want your 2nd router to receive it's signal wirelessly from your first router. You can try configuring this but generally it requires you have an Apple router first connected via a wired connection to the internet. It doesn't work well with other routers.