Spin-wave excitations in ensembles of atoms are gaining attention as a quantum information resource. However, current techniques with atomic spin waves do not achieve universal quantum information processing. We conduct a theoretical analysis of methods to create a high-capacity universal quantum processor and network node using an ensemble of laser-cooled atoms, trapped in a one-dimensional periodic potential and coupled to a ring cavity. We describe how to establish linear quantum processing using a lambda-scheme in a rubidium-atom system, calculate the expected experimental operational fidelities. Second, we derive an efficient method to achieve linear controllability with a single ensemble of atoms, rather than two-ensembles as proposed in [K. C. Cox et al. "Spin-Wave Quantum Computing with Atoms in a Single-Mode Cavity", preprint 2021]. Finally, we propose to use the spin-wave processor for continuous-variable quantum information processing and present a scheme to generate large dual-rail cluster states useful for deterministic computing.