Alomst same problem here.
Bought my APEn friday, it worked fine the first day. It was configured to access my current wifi network (D-Link 624 - WEP 40bit) and it was working fine.
The next day, there was an update for my APEn, I installed it and just after that, nothing, the thing is just unreachable, with blinking amber light.
I taught it was my D-Link the problem (
http://forums.macrumors.com/archive/index.php/t-112000.html) but after reading this discussion, it looks like the problem come from my APEn.
The thing work great with default factory settings. That's fine with me, my iMac is wired to the D-Link. I can't say the same for our other machines in the house. I have to fix this. I just sold my older Airport Express that was working absolutely fine...
sigh
Message was edited by: Alain Duchesneau