Airport Express won't work simultaneously with Internet Sharing

I just purchased two Intel-based iMacs (each with standard configuration including Airport cards), and 1 AX. I placed iMac #1 in Room #1 (near my cable outlet), iMac #2 in Room #2, and the AX in Room #3, along with powered speakers. Using an Ethernet cable, I connected iMac #1 to my cable modem (and its broadband internet connection). I then turned on Internet Sharing, so that iMac #2 now connects to the internet through iMac #1. I also placed the AX in another room and connected it to powered speakers. Here's the problem: Airtunes only works (i.e., the AX-connected powered speakers only show up in iTunes) when I turn off Internet Sharing. The powered speakers "disappear" from iTunes as soon as I turn Internet sharing back on.
Is there any way to fix this?

I assume that you are having this problem with iMac #1 which is doing the sharing... Perhaps this happens because iTunes will not cross subnets.
Even though iMac #1 exists on both subnets (the Ethernet one and the one created by Internet sharing) it appears that iTunes is not using the subnet created by Internet sharing. Therefore it won't cross between the Ethernet subnet and wireless subnet.
The solution is to get an inexpensive wireless router and use that instead of iMac #1 to create your wireless network.

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