Will my airport express 802.11d interface with the new 802.11n for music streaming?

I am about tho purchase the new airport express and have the old one running in the house already. The reason for the purchase is to stream music to speakers in the house. The older one is dedicated to the modem and provides wifi, the new ones will be plugged in elsewhere. Should I replace the old one or keep it?

Welcome back!
If by "older" AirPort Express, you mean it is a "b/g" version, you'll have to use the WDS setup options on both the new AirPort Extreme"n" and the AirPort Express.
Unfortunately, two negative things will occur when you setup WDS:
1) Because WDS is a "g" technology thing, the entire wireless network will drop down to "g" wireless levels. So, you lose any advantages of "n" speeds with your new router.
2) The bandwidth on the entire wireless network will be cut 50%.
Bottom line, you will have a "g" wireless network operating at half of it's capability. That's a tremendous loss of performance for a bit more wireless coverage, but you may disagree.
WDS is difficult for most users to set up because it is very easy to make a mistake. Look over this post to get an idea of what is involved with this. There is also a link to Apple's instructions in this post, but the step by step by expert user Tesserax is easier to follow.
http://discussions.apple.com/thread.jspa?threadID=2287950&tstart=0
I do not recommend WDS, but it's your call.

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