Upgrading MacBook Pro 17" - do I need to connect old drive externally? I am upgrading the HDD of a MBP 17" Mid-2009 to an SSD. 

I have an Airport Time Capsule with Time Machine backups in it.

Do I still need to purchase a USB/SATA connector for my old drive or can I use the Time Capsule? If so, does it need to be physically connected via USB?
Migration Assistant can use a Time Capsule as a Time Machine backup source, without the need for a direct connection. Once you've installed OS X, use Migration Assistant to restore from a Time Machine backup, then select your Time Capsule.