How can I set up airport extreme using my existing 11.g router

My existing router (ZyXEL - supplied by Telefonica with my land line) is an 11.g type and does not allow me to use iPad/iPod in certain areas of my home. Yesterday I bought an Airport Extreme and was told that I could either connect my existing router's ADSL line directly into the Extreme and connect to my Mac and other peripherals using USB or ethernet cable, or connect from the existing router.
I tried each method using Airport Utility in each case and also trying the different options offered in the set-up. It doesn't seem to want to work.
Can anyone help me please.

Further to my earlier (and first) posting, I have been playing with the airport extreme and it now works via my existing router but, it's range is less than 15 metres and that is no better than my existing 11.g router.
Does anyone know how I can increase this range?
p.s. any help in the simplest terms please.

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I'm having a house built and all of the wiring for TV, phone, and internet will be centralized in a closet. The cable modem can be placed there as well. In one room in the basement I want to use my Airport Extreme for my iMac and USB external hard drives. In another location of the basement, I'd like to set up a Time Capsule for another desktop and USB printer. If the cat5e comes out of the wall at each location, I "think" I need a router at the closet location. I also thought I might need an Airport Express upstairs on first or second floor to boost signal for my laptop. The house isn't that big so maybe that's overkill. So beyond the router question, do I want to set up a roaming network and have the Airport Express connected via ethernet or just wireless if the thought is that I need this? Finally, if I should connect cable modem to router to Airport Extreme, Time Capsule, etc., in what order and ports does the equipment get connected? Many thanks!!

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American living in germany here. I am using a PowerBook G4 running OS 10.4.11
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