No detection of a brand new Airport express

Hi everybody, I purchased an AE a few days ago. I tried to make it work at home but without any success. This is the exact sequence of what happened after I installed Utility Airport and updated it to the last version.
1) At first UA didn't detect the base at all, even after many attempts and after having changed 3 rooms in the house (in the beginning I located AE close to a TV antenna cable and several electric cables, so I though there was interference).
2) When UA finally detected AE base, it was unable to set it up due to some unspecific error.
3) I closed UA application (as requested in the pop up window) and re-launched it. Again UA was unable to detect AE.
This frustrating three-points stuff happened several times; I tried soft and hard reset many times but I never succeeded in setting up the base and the light always remained amber flashing.
Then I tried the whole process in my office and it worked immediately: I set it up and it worked both for internet connection and music streaming from ITunes. I came back home and again, though this time the base was setup and the light was stable green, my macbook was unable not only to connect to the network, but even to detect the base.
I even downloaded KisMac for checking channels of my neighbors' wireless networks, but it seems they are all using 6 and 11 channels, while my AE is set on channel 1.
Has anyone experienced anything like this ? Any help would be extremely appreciated. Thank you and Happy New Year.
Manuel

I am just piling on to this last message-I don't have a successful connection. I was able to get a green light on the airport express unit by first doing a wired set up to my verizon fios modem- as I did setting up with wireless printers. But the airport utility does not find it. It did find it once - and the itunes speaker icon lit up - but then it couldn't find the boze and - even after complete restart - it can't find the AE. I suspected it was a problem with the WEP encryption on my FIOS modem - but since the light is green I'm assuming it has the correct network settings. It's just not recognized by my Imac. I just want to install it on my existing network to output itunes to the Boze speakers in another part of the house. Note - I've been configuring this right next to the modem and wireless distance is not an issue.

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