Airtunes/airport express not connecting

I'm having trouble with my new airport express. I can't seem to get it set up.
Currently, I have the old, flying saucer shaped airport extreme. I bought the airport express because i want to use airtunes. I used the set up assistant to set it up. Followed all the instructions, but when it goes finish it, it just spins and spins. It looses it. Does this have something to do with the security level I have set up with extreme?
Here is a case of me followng the instructions EXACTLY as it says to do on the product setup but it just NOT working. Ususally things do just work. Not in this case.
Help please?
Thanks.

Here is some more specific information about the problem I am having. After setting up the AirPort Express, here are the messages that pop up.
"The settings for this base station have been successfully updated. You can close this window or wait for the base station to restart."
As this message appears and the gear under it spins... (I wait as the message says to...) the green light on the Express comes on for about half of a second before it turns back to solid yellow, then to flashing yellow, then about 3 minutes later, this message comes up:
"AirPort Utility was unable to find your base station after restarting. The settings for this base station have been successfully updated, but there was a problem re-joining the wireless network or finding the base station. You may need to select your network from the AirPort menu and try again."
Though I am not totally sure what they mean by the "AirPort menu" I can seem to find my Airport Express anywhere. In fact, the only way I can get it to be discoverable again is to do a factory reset. Then my computers can see it. But if I follow the setup as I did, when all is "set up" my computers NO LONGER SEE THE AIRPORT EXPRESS. The light on Airport Express is now slowly flashing yellow. After the factory reset, it flashes yellow but when I click on the airport icon at the top, it does see the Airport Express. After I set it up, NO SEE it.
HELP please:-)
Adam

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