Can't install AirPort Express, and unit is flashing amber

Hi,
I've just bought an Airport Express unit, with the aim of playing iTunes remotely (I have a separate wireless connection to the net). I have two problems:
1) When I try to install the Airport Express software provided, the setup tells me that I have a later version of iTunes and cannot install Airport Express. Does that mean iTunes v7.0 (which I am using) already contains Airport Express?
2)My Airport Express unit is flashing amber. Resetting the unit makes no difference. I suspect this is due to the problem of 1) but am really stuck on how to progress!
many thanks in advance!
Mike

Duane,
Thank you for your speedy response!!!!
When I open the AirPort Utility.app, a window opens called AirPort Utility, the twirly/stopwatch icon goes into motion next to the words"Discovering Base Stations." After this happens for some seconds, these words appear...
"AirPort Utility was unable to find any AirPort base stations. Please make sure the AirPort base station you want to set up is plugged in and in range of your computer, and then click rescan to try again."
My express is plugged in five feet from my computer. What to do....?
Many thanks!
Terry

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