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To the OP, yes, you can use Airport Express in conjunction with a Verizon FIOS (Actiontec) modem/router, although its only a ~90% solution. I am using an Actiontec modem/router together with 2 AE's. I configured both using the Airport Utility to "join an existing network", and things are working pretty well. However, sometimes when I stream music to one or the other AE using AirPlay, it will cut out for a short period of time. I've researched this problem a fair bit and I believe it is because the Actiontec's NAT is only 1kb, so it easily fills up. My intention is to get another wireless router and bridge it to the Actiontec, turning the Actiontec into a modem only.
Bottom line is the Actiontec - Apple Express setup works most but not all of the time. I don't believe that replacing the Airport Express with an AirPort Extreme will make a difference. Rather, the issue has to do with the Actiontec's limitations as a wireless router.
Is your actiontec connected to the FIOS box with cat5 or coax? If it's a cat5, then it's just working only as a router and any wireless router can replace it. The Airport Extreme would replace the Actiontec device with the airport express extending the wireless network and can act as an airplay device. (which is what I do)
Grats on the airport extreme. You should be able to view the wireless connection quality between the airport extreme and airport express and any wireless devices using the AirPort Utility. At least Apple gave us enough options to tweak that. Also you might enable both the 2.4 and 5 GHz channels, under the wireless tab there's a wireless option button with a few more options. BTW, the coax connection to your actiontec box might mean you have to use it if the FIOS box doesn't have the modem built into it.