Setting a password for airport express

Dear all
I have had my apple ibook and my daughter's windows pc running wirelessly on the airport express for a while now. I am concerned about hackers being able to get into a) my or my daughter's computer and also b) helping themselves to our internet provider. I have tried setting a password but even so, it never asks for a password when I log on. Why is this? What have I done wrong? It is quite worrying as our computers have lots of private and banking details on them. I need an idiot's guide to setting up the ae so it always asks for a password when going on to the internt.

There are 2 passwords that could be associated with an AirPort Express (AX).
(1) Administration password. This password prevents unauthorized people from making changes to the setting of the AX. This does not protect your wireless data in any way.
(2) Wireless encryption -- WPA2, WPA, or WEP. This password is used to encrypt the wireless data so that unauthorized people can not read that data. This password would also be required to connect to your AX.
If you enable the (1) administration password it will have no effect on your ability to join the wireless network. The only time that you would be prompted for the password is when you tried to use AirPort Utility to change the settings of the AX.
If you enable (2) wireless encryption, you will be prompted for the password the first time you wireless connect to the network. If the option is enabled for your computer to remember the password, you will not be prompted for the password next time you connect. The computer will simply use the previously stored information. The wireless data will be protected from unauthorized users.

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