I just did a small search but did find this.
Thanks to Peter Logan at Crutchfield who wrote the article but it was dated.
"Again, uncharacteristically delving into the owner's manual, I discovered that in the WDS mode, the AirPort Express does not support WPA wireless security. As my existing wireless network was using WPA security, I had to access the AirPort Setup Utility to set the security level to WEP — still very secure, but not quite as robust as WPA. After a few tweaks to the AirPort Setup Assistant, I set my main base station to allow the AirPort Express to join and extend the range of the network. After matching the security levels and passwords, the AirPort Express seamlessly joined the existing network."
I do have wireless, using a Linksys router and have the encryption of WEP 128 bit which is good protection from what I have read.
Using that, I just haven't tried the Apple Airport Express so I'm just not familiar but from the little I have read this could be the problem.
I know earlier in this thread somebody had a way to make the Airport work, I will have to read it over again to familiarize myself with it.