Well, this is the end of my airport express saga. I have wasted far too much time trying to get this dysfunctional device to work. I have given it my best, which is not insignificant, being a programmer, formerly working extensively on mac issues (pre-X), but this device has not been thoroughly debugged. Enough of this.
I called apple store today (in Japan, where I live), and told them my tale... the device is currently winging its way through the postal system to the Apple "dead on arrival" center here in Japan.
It was quite odd that they told me they would deduct from my refund their shipping costs and a 10% restocking fee for this item that they are accepting back as "Dead on arrival". Why should I have to pay anything? They should pay me for my wasted time plus triple punitive damages.
At any rate, they are so darn polite on the phone here, that it is hard to play hardball with them, or do soemthing like just contest the entire charge on my credit card, because frankly, 10% of $130 is $13 then their shipping costs would probably bring the total to about $20, and given the amount of wasted time and frustration this device has already cost me, I hardly think it worth my while to add "gear up for fight with Apple over $20" to my already lengthy to-do list.
Good riddance, AX.
In the future when a device like this is properly tested and thoroughly debugged before sale, I would be glad to buy it again, a working version.