Extended Time Capsule WiFi network using Airport Express - Result: SLOW internet

Hi everyone,
I have a little issue with my wireless internet.
Currently I have a 2Mbps down and 256Kbps up internet home. My ISP modem is connected directly to my Time Capsule (TC) and I don't have any problem when using the WiFi from the Time Capsule.
Recently, I wanted to extend my TC WiFi Range and bought an Airport Express to do that job. I've configured everything using the default/recommended settings.
The WiFi range was correctly extended but the problem is now, when I'm using Internet in the extended zone; it is REALLY slow!! I have done some speed tests in the extended zone with different devices (iPad, iPhone, PC, Mac...), and as result I have in average 128Kbps down and 50Kbps up!! You can imagine how this is annoying!
I tried to see the configurations of the Time Capsule and the AirPort Express and I didn't find anything that could explain that.
So, could someone please help me to fix that problem?
Thank you all in advance,
Mathieu
P.S.: FYI, The radio mode used for the wifi is 802.11n (802.11b/g compatible).

I'm not sure I necessarily agree at this point, as the two walls could cause significant Wi-Fi interference to prevent the extended network to perform well beyond the room the TC is in.
One way to quickly determine this is to make a Signal-to-Noise Ratio (SNR) calculation at the location of the AXn. SNR (in dB) = Signal (in dBm) - Noise (in dBm) and it represents the signal quality at that location from the router providing the wireless network.
To get an accurate picture, you will want to temporarily power-down the AXn since we only want to calculate the SNR for the TC at the location of the AXn.
You can get the Signal and Noise values directly from your Mac. Of course, it would be easier if your Mac is a laptop version, so I will assume at this point that it is.
While placing your Mac laptop near the AXn, open up the System Profiler. (ref: Apple icon in the menu bar > About This Mac > More info ... > Contents > Network > AirPort Interfaces > en1 > Current Network Information > Find your wireless network > Signal / Noise)
A SNR of 25+ dB would be desirable. For HD streaming performance, you will want an SNR of 35+ dB. Please post back your results.

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