Bonjour networked printer with Time Capsule in bridge mode
I'm not positive this answer will work, but these are the first things I'd try.

To answer your questions:

1) Yes, that configuration should work.

2) You can see it because it is a Bonjour device - just because you can't connect to it doesn't mean that it doesn't exist.

3) Check the settings on the printer. You can either do this on the screen of the printer (assuming it has one) or by opening a web browser and typing the internal IP address into the address bar. Make sure that the printer is configured to get its IP address using DHCP and is not self (manually) assigned.