Why is my Airport Express keeps flashing an amber light?

Hello everyone, I need help. I bought a brand new Airport Express yesterday and it kept flashing an amber light and I got a error message saying it was out of range which it wasn't because my AT&T modem is right next to my Airport Express. So I went back to the store today and had it exchanged for a new one, I'm still having the same problem this is the error message I get: "MAKE SURE YOUR APPLE WIFI BASE STATION IS PLUGGED IN AND IN RANGE OF YOUR COMPUTER OR CONNECTED VIA ETHERNET AND TRY AGAIN (-6753)"
I'm using a AT&T Motorola modem and I'm connecting my Airport Express through the Ethernet port. My AT&T modem isn't the issue, it's running fine because when I connect the Ethernet cord direct to my computer I'm able to surf the web. Just in case I have a brand new MacBook Pro the latest version running 10.7.2. Please if anyone knows what's going wrong or has any solution on how to fix it please let me know as soon as possible. Thank you so much in advance

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