AirPort Express via ethernet cable/Wireless.

I have an iMac upstairs, and want to stream music to my HI-Fi downstairs. My new AirPort Express has a green light and is found via Airport Utility on the iMac when connected to my modem (BT HomeHub, downstairs)) via ethernet cable. But once unplugged from the modem so I can use it near the Hi-Fi it is not found via wireless, and has a flashing amber light. I only want to stream music from iMac to Hi-Fi. I set it up to join the existing network - the guy in the Apple store assured me I didn't need to be connected by ethernet to the modem, that it would work via WiFi. What am I doing wrong?

Thanks to edex67 for providing the info that the Home Hub will work with WPA/WPA2 Personal security.
Please locate the Express temporarily in the same room or an adjacent room as the Home Hub.
Perform a Factory Default Reset on the Express to get everything back to a known state as follows:
Pull the Express from power
Wait a few minutes
Hold in the reset button first, and keep holding it for an additional 9-10 seconds while you simultaneously plug the power back into the Express
Release the reset button after the hold period and allow a full minute for the Express to restart to a slow, blinking amber light
Click the AirPort icon at the top of the Mac's screen and make sure that you are connected to Apple Network xxxxxx. No password is required.
Open Macintosh HD > Applications > Utilities > AirPort Utility 5.6
Click on the AirPort Express and then click Manual Setup
Click the Base Station tab below the row of icons to assign a device name to the Express, device password, and adjust Time Zone Settings. The settings should look like this:
Next, click the Wireless tab located next to the Base Station tab. Adjust settings as follows:
Wireless Mode = Join a wireless network (You might have to hold down the option key on the Mac while you click on the selection box to see the "Join" setting appear)
Wireless Network Name = Name of the Home Hub Network
Enter a check mark next to Allow Ethernet Clients if you want to enable the Ethernet port
Wireless Security = WPA/WPA2 Personal
Wireless Password = Home Hub wireless network password
Verify Password
Click the Update button at the lower right
Close AirPort Utility as soon as you see the message that the configuration has been stored on the Express
Wait 45-60 seconds for a green light
Move the Express to the desired location and power it back up, connect speakers, etc.

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