2 iMacs, Time Capsule as router, only one does WiFi

I have two iMacs. One (20") was bought in 2009 and is running OS X 10.6.8. The other (21.5") was bought today and is running OS X 10.7.3. I have a Time Capsule that I bought in late 2009 and have used to back up the older iMac. In February 2012 I started using it as a router for that iMac after a Linksys router failed. In all the time Ii've had that iMac, I wasn't able to get it to connect wirelessly to the TC and it wasn't that big a deal so I didn't try to figure out why it wouldn't work wireless.
Today I set up the new iMac. The fellow at the Apple Store told me that both iMacs should be able to connect wirelessly with the TC. I successfully set up the new iMac and connected wirelessly to the TC using one password to connect to the wireless router and a different password to connect for backup. These are the passwords that I set up long ago. I then tried to do the same thing with the older iMac. Airport is not turned on. When I run diagnostics for it in System Preferences, Airport won't recognize the passwords. I checked my Keychain and could view one of the passwords and it is the same password. I can't figure out where the other password is stored. But these passwords work to set up the new iMac for both backup and wireless but do not work in Airport for the old one.
I am flummoxed!
My iPhone works with the WiFi. Others have brought their laptops here and have connected to the WiFi. Why is it that one of my iMacs won't do WiFi? It is sitting right next to the TC. The other computer is only a few inches away on the other side.
Do I need to reconfigure something? It's probably something simple. I can't figure out what it is.
I access the internet and get backups on the older iMac by using an ethernet cable. It won't do wifi.
Suggestions would be welcome! Thank you!
Ginny

On the problematic iMac, please try the following, in order, until hopefully resolved:
1a. Delete Preferred Network(s)
System Preferences > Network > AirPort > Advanced > AirPort tab
Under "Preferred Networks," delete the network(s) you regularly use from the list.
1b. Delete AirPort Keychain Entries
Launch the "Keychain Access" application located in Applications/Utilties.
Click on the "Kind" filter at the top, and look for any "AirPort network password" entries...and delete them.
1c. Add Preferred Network(s)
System Preferences > Network > AirPort > Advanced > AirPort tab
Add the preferred network(s) using the "+" button.
Restart or log out then back in.
2. Move System Configuration Files
(Note: You will have to reestablish your network connections settings.)
Go to /Library/Preferences
Move the SystemConfiguration folder to the desktop.
Restart your Mac. (Note: OS X will rebuild the files that are now sitting on your desktop. If this doesn't resolve the issue, you can move the folder back to it's original location.)

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