I'm considering buying airport express

Hi guys/gals,
I'm considering buying an airport express but have a few questions, I'd be grateful if anyone could help!
Current situation is I have one of the new iMacs in my house currently not near a telephone socket at wall (hence my need to go wireless). I also have an iPod Hifi situated elsewhere in the house which I would like to be able to stream music to from my iMac. (The iPod Hifi just happens to be beside a telephone socket at the wall - if this is of any benefit??)
My main concern is - does the airport express need another wireless router to access its signal or can it actually act as a router itself? if so, how do i connect to my internet connection?
Am i correct in thinking I should plug the airport express in beside the hifi so as i can obviously run the audio cable to it and if the airport express does not need another router then I can just connect it to the telephone socket beside the hifi for the internet connection?
I'm sorry if any of this is vague, any help would be appreciated!!
Thanks in advance,
Stephen

I am using a Mac Pro with airport extreme card in it (the card was an option)- I suppose iMacs have this card built in as standard. If so go for it. (as to how to install the AE in your case check the manual - it's pretty straight forward)
If you have a good hi-fi system (with a receiver having toslink connection) I strongly suggest you make use of the Airport Express toslink connector (you have to purchase the toslink cable (optical) cca 20 Euro if you do not have one already. The quality is unbelievable (use apple lossless codec for your files).
I do not have a receiver but an external DAC (digital to analogue converter) connected to AE with the toslink cable. The DAC is connected to my hi-fi system by RCA cable.
I just finished transfering my CD collection to an external MyBook 1TB USB 2 HDD (all files in Apple Lossless codec !) and believe me the quality is so good - I will probably never use my Hi-End DENON SACD player again...
+"There are two kinds of music the good and bad. I play the good kind."+
+- Louis Armstrong+

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    Message was edited by: haiu2323
    Message was edited by: haiu2323

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