My Macbook ignores Airport Express

So I have been having some **extremely** frustrating problems with Airport Express and my Intel Macbook. I've previously owned an Airport Express and had no problems until I moved. Someone convinced me it got broken when I moved, and given how fragile these things are, I got a new one in the hopes that I could finally use the internet I've been paying the cable company for.

After about 4 hours I finally got the AE set up, by connecting the ethernet cable directly to my Macbook since it won't see the new AE wirelessly. It dropped out almost at the end of the setup process, because even though it was directly wired to the AE it couldn't see it. I plugged the ethernet cable into the modem just to see what might happen, and found out the AE is working, because I can go online with my ipod touch just fine, fast connection, no problem. The problem is, my Macbook still can't see the AE at all, or its network, regardless of whether its connected directly or wirelessly so I can't go online with the Macbook. The wifi on the Macbook works all right, because I'm borrowing a neighbor's connection to get online right now. There just seems to be some weird disconnect between the Macbook and the AE, but I can't figure it out. I downloaded an AE firmware update in the hopes that would help, but since my Macbook can't see the AE it won't do anything with the firmware.

I am so annoyed!! Does anyone have any ideas what could be wrong? I've gone through my System Preferences, but I don't see anything out of the ordinary. I'd really like to be able to have both the ipod and the Macbook running on the same network. Any help appreciated!

Update: Although the Macbook still won't see the AE in the Airport Utility, I am able to see the network via the Airport wifi, and it's at full strength since I'm next to it. When I try to connect, it prompts me for a password, which I enter, then the connection times out. I've tried 5 times, restarted, and tried again.

Old thread, but hope youre still here. I have the same problem now... Did you ever fix it?

Planning to use a chainsaw on my AE this afternoon if nothing changes.

OK. I'll try and help. But I'll need some more info.

1. Which Mac do you have?
2. Which version of OSX?
3. Have you got the latest version of Airport Utility?
4. How is everything connected? Modem connected by cable to Airport Express?
5. Does the internet work OK when the modem is connected directly to your Mac by Cable?
6. Are you just wanting to use a modem and the Airport Express instead of a more common cable router?