Airport Express to extend network - WEP security issue

I have an existing Time Capsule based wireless network (set to WEP Transitional Security). I just bought Airport Express with the intent to extend my network. The TC is set to allow the network to be extended. I also set up the Airport Express to extend an existing network - however, I am not sure what security protocol to set since WEP Transitional is not an option. I chose WEP 128 but it resulted in the Airport Express hanging when it tries to update and restart. If I chose a WPA protocol it does update and restarts fine. iTunes recognizes this as a speaker. However, I'm not sure if this is a correct setting. Also the Airport Express does not show up in the list of wireless networks to connect (which I assume is the way it should work).
I went through the discussion board but could not find any solution. Any help would be greatly appreciated

Welcome to the discussion area, Katan!
If I chose a WPA protocol it does update and restarts fine. iTunes recognizes this as a speaker. However, I'm not sure if this is a correct setting
That is the correct setting.
Also the Airport Express does not show up in the list of wireless networks to connect (which I assume is the way it should work).
That's correct. It's extending your wireless network, so you'll only see that wireless network as a choice to join from each computer or device.
Your computer will automatically connect to the device with the strongest signal, which is almost always also be the closest device unless there are major obstructions involved in the signal path.
Post back if you are interested in checking to see which device your computer is actually connected to at any given time.

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