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Welcome to the discussion area, Mike!
+My plan is to put the new Airport Extreme on the middle floor, in a cabinet next to the new TV+
You don't want to do this if you want maximum wireless coverage from the AirPort Extreme. It needs to be out in the open and away from any obstructions to the signal path. Not sure what type of cabinet this would be, but you'll be losing a fair amount of signal right off the bat and the chances of wireless interference increase substantially. Possible to put it on top of the cabinet?
+I am wondering if I should leave the old Airport router on the network or just keep it for a spare?+
If you can connect it to the "main" AirPort Extreme using an ethernet connection, that will work OK. If you are thinking of using wireless to connect and extend, you probably won't want to do this for the following reasons:
1) The WDS setup will limit you to maximum "g" level wireless performance, so you'll lose any benefit of "n" speeds on your new AirPort Extreme
2) The bandwidth on the entire network will be cut by 50%. In effect, you'll have a "g" wireless network that is working at only half of its capability.
+I am not sure how streaming video over the internet effects things.+
Your plan to use ethernet to connect the AirPort Extreme and TV is a good one. Even if you are downloading a hi-definition movie at the time, I doubt that you will notice any drop in network performance if you are doing other things on the network.
Message was edited by: Bob Timmons

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