Question about Time Capsule and Airport Express co-existence

I have a new 3TB ME182LL/A Time Capsule attached to my wired home LAN, in bridge mode.  It works fine both as an access point on the upper floors of my home and as a Time Machine device. I also have an Airport Express, whose function in my network is solely to control my whole-house audio system from ITunes. I don't need, want, or use the wireless networking features of the Airport Express. I just have an audio cable running from it to my stereo, and an Ethernet patch cable connects it to my wired LAN.  The network mode in the Airport Express is set to "off".  Historically, the Airport Express has worked fine in this wired lan mode.  However, I unplugged it at some point while having some initial trouble deploying the new Time Capsule and only turned it back on today.  After turning it back on I observed something strange. My speedy wireless connection upstairs via the Time Capsule became slow. And when I launched Airport Utility, it drew a network diagram which showed my Time Capsule as a CLIENT of the Airport Express. In other words, the network diagram showed Internet at the top, then a vertical line down the the Airport Express, then the Time Capsule below that.  The correct / desired diagram would be the Time Capsule and Airport express as peers.  I connected to the Airport Express and verified that network mode was set to "off" but the incorrect network diagram persisted (as did poor wireless performance) until I unplugged the Airport Express.  After I did that, the Airport Utility drew the network correctly, although of course it showed a yellow caution sign next to the Airport Express, since it was down. And my wireless speed / reliability returned to normal. What is going on here?

The automatic setup in the airport utility has changed something.
Is the line down to the TC from the express dotted.. in other words is wireless??
Funny stuff happens.
Please post the screenshots of the 3 pages from the airport utility setup for both airport express and TC..
Make sure wireless is set to off in the express.
Both should be set to dhcp on the internet tab and both set to off bridge mode on the network tab.
So for example the bridge on the network tab.
The summary page can also be a help.
There is a half summary page when you click the item in the airport utility.
There is also a fully summary page, when you hold option key and double click the TC icon for example.

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    Message was edited by: Bob Timmons

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    Always do setups with ethernet.. setting up wireless via wireless is like cutting off the branch you are sitting on.
    You do not need the TC in the network to do the setup.
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    Count the walls the signal is going through.. about 15% signal loss for each one.. if angle is acute 20%.. floors are worse.. they might be 20-25%..

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