Extending wireless network for better signal use with apple tv receiver

I been doing some research regarding the apple extreme as well as the apple express products to extend my network and make it work better with an apple iTV that I want to send photos and slidesshows via airplay.
I have a 2nd generation extreme setup as my main wireless network. I also setup one 1st generation extreme as well as one express units to extend the range and signal strength.
When I setup my iTV I see the signal extreme to just three (3) bars without the additonal units powered on. When I power and configure the other two units to extend the network, I do not see any difference in signal strenght in my iTV. Thus when I am sending info to the iTV, the music and slide show are rerky and erratic. not smooth at all.
I setup the 1st generation extreme as it's own separate network (without access to the internet) and then instructed the iTV to connect to it. It did so and I was able to display movies and slide shows perfectly. The signal strength was high. (unit was only a couple of feet away).
So, I am not sure how come the signal strenght is not affected by the use of my extreme as an extender. Can you provide some light on this?
Thank you.

Hi John,
Thank you. That explains a lot! I'll see what I can do about upgrading my extreme and/or express to a newer unit and then see if indeed the issue is solved.
BTW, I changed the channel to 40 vs automatic and I saw an increase in signal strength as viewed by the apple tv unit, but it did not changed the performance of my airplay stream from my macbook pro to the apple tv unit.

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