LapTop can't find Airport Express to play iTunes.

I’ve been using Airport Express 4.1.01 (installed Nov ’04)for the sole purpose of wirelessly playing iTunes thru stereo system which is in a different part of the house from my Dynalink Modem-Router. The Toshiba L/T I had been using was clogged and painfully slow to use so was cleaned up by using the recovery disk and it is now used by another family member but is not using AE.
I‘ve bought a new Toshiba L/T with XP Prof OS. Both L/Ts have wireless connection to the internet using a Dynalink Router/Modem (R/M)and share a printer – not via AE.
My system is similar to that on page 18 except L/Tops are connected wirelessly to R/M and the stero and AE in a different room from the R/M. I don’t expect to listen to stereo and browse net at same time.
When I attempted to install AE I got an error message “A later version of iTunes is already installed on this machine. Installation cannot continue”. Current iTunes is V7. However, when I clicked OK on the error message the AE Introduction Window with the 3 icons (Internet, Music and Printer) appeared and over the top of the AE window another error message. “An error occurred while trying to use the wireless internet system” and the Next button on the AE window was dimmed. Once I clicked OK on error window the Next button cleared and clicking it I chose the “Set up a new AE” option and next the “Create a new wireless net work network” option.
Despite the error messages both Airport Admin Utility and Airport Express Assistance are installed and scanning and rescanning give negative results. The Admin Utility opens the Base Station Chooser window with the left panel blank and the Base Station Information panel also blank. The Configure button disabled. I’ve done both sorts of resets and still nothing even though I’m doing this in the same room barely 2 metres from the AE and in the same position where everything had worker OK on my previous L/T.
I’ve even tried connecting my L/T to AE with an Ethernet cable and opened the AE Admin Utility. Still nothing and NO Tabs for either AirPort or Music Settings. Instead there are 3 Menu items – File, Base Station and Help as well as two buttons – Other and Rescan. I don’t have the information for the information asked by pressing Other.
When I attempted to update AE after downloading Airport V5.0.14 I was got the message “This update requires Airport V 5.0 to be installed. I can’t find V 5.0 to download if that is in fact the answer to my problems.
PLEASE! I desperately need help. Can’t remember this hassle when I set it up 2.5 yrs ago.
Toshiba L/T Windows XP Pro
Toshiba L/T   Windows XP Pro  

This seems to be a common problem on several threads lately. Everything is configured correctly.
The airport status is green. But iTunes does not show the speaker choice button.
It was working fine, but at some recent point it stopped and I can't get it back.
I have the same issue with two different Airport Express units.

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