Trying to get 2nd AE hooked up w/ Touch, ATV & Remote

I have had my AE 1 going now for almost a year and am loving it. I use it in living room to play stuff off my ATV in to my stereo wirelessly, using the Touch with teh Remote app. No w i want to add a 2nd AE for bedroom as a headphone system. I got teh thing up and running with ethernet connected, as i remember doing the first time. Only this time, when i disconnect the ethernet, the light is green but nowhere can i get i t recognized, not on mac, not on Touch, nowhere. Is there a walk-through for this kind of set-up somewhere. There has to be, i know.
thanks

So, after the upgrade, i connect AE to my internet network? I saw that option pop up when i tried sending music to the AE through iTunes on Macbook, and the AE got recognized and asked me if i want to integrate AE into network/internet. Is this what you are referring to?
Supposing i do this, will i continually have to switch network connections on Apple TV (from DSL modem to AE) whenever i want to send music to AE, hence lose connection to internet?
Is there a way to save password, in this instance. I would hate to have to enter the 8-10 digit password every time i want to switch connections.
Also, will i be able to continue to use iPod Touch to control Apple TV and, thus, send music from ATV to AE? Ideally, i want to be able to be in room 1 with AE and control ATV (which is in room 2) with Touch without having to go in room 2 and configure ATV to send music to AE. Presently i can do that...i just pick up Touch, access Remote App and start listening to music through ATV.

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