Why does my Airport utility not have either an option to manually configure, or a box "to extend the network?"

I have Mac with Lion, with an AIrport Extreme wi-fi network. I am trying to configure a Airport (model A1264) to extend the network. I read the Apple article on how to configure an extended network. Unfortunately my Airport Utility seems to have none of the functionality mentioned in the article. The article states to choose manual configuration of the base station. I can find no such option in my Airport Utility. Secondly, it the article states to check "create a wireless network," which I can find, but then says to check box to "allow this network to be extended." No such option appears anywhere in my Airport Utility. Lastly, my Mac is not even recognizing the existence of the Airport Express. It does not even appear as a wireless device, nor does it appear in Airport Utility as an "Other Airport Base Stations. It does however continue to flash amber. Does anyone know what might be the problem?

Thanks,

bmarr