Airport express over ethernet blocks my wifi

Hi.
I have a wifi network via a modem from my ISP and I want to extend it with an Airport Express.
When I connect it over Ethernet, I can configure it to extend the network, but despite having a strong connection (i.e. 4 bars on my MBA, iPhone, etc.), I can't access the internet. There's just no access.
If anyone has any ideas about how I can fix this, I'd be extremely grateful!
Thanks

then when I try to switch it to extending
That is not the correct setting to use.
"Extending" is only used when an AirPort connects using a wireless connection to another AirPort router.
When the AirPort connects using Ethernet, you have to use the "Create a wireless network" setting.
It might be a lot easier if you simply start all over again and let the configuration "wizard" do most of the work for you. All that you really have to do is name the network, name the Express, enter the password and click Next.  Everything else is handled by the configuration utility.
Post back if you are not sure how to do this.

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