new airport express extends network but won't allow connection

Added new airport express to network replacing a MacBookPro that was in another building wired by ethernet. After setup the Network shows up "ArizonaXXX" and both Airport Extreme router and Airport Express show green lights. The attempt to connect however fails showing the password entered for the WAP2 network as incorrect although it is not. Reports "timeout connection failed".

Now what? It appears all is hooked up correctly.