Thanks for the info. Which device is your "main" router?
In order to "extend" the network, an AirPort Express must connect directly to the "main" router......not to another AirPort that might already be configured to "Extend a wireless network".
This would mean that the 1st Gen Express must be located closer to the "main" AirPort than it is to any other AirPort.....so that the Express will pick up a stronger signal from the "main" AirPort than any other AirPort on the network.
Unfortunately, Apple does not provide these types of details in the setup guides for the products.
If you do want to try to configure the 1st Gen Express to "extend" the network, you cannot simply change the settings on the Express......you have to reset the Express back to factory default settings and then set it up again. Post back if you need more help with this.
Finally, you might not be aware that when you set up an AirPort to "extend" the network, the maximum speed on the entire network will be cut by at least half and possibly more. So, while you might have a "bigger" network, you will also have a significantly slower network.