I FIGURED IT OUT!
I've spent hours on this trying to figure this out. I finally got it to work. Here is my setup, I'm acutally traveling abroad and I'm taking my apple networking gear with me so I can always get on the other wifi networks. I am unable to modify the hosts' routers of where I'm staying.
Cable Modem/Wifi Router (all in one) NAT+DHCP -> Airport Time Capsule 2TB (created network) -> airport express 2nd gen (extended network) -> End clients (assigns ips now).
Basically this is what you have to do. When you first setup the Time Capsule, you have to make sure the WAN ethernet port is not plugged in from the non-apple modem/router. If it's plugged in, when you create the network and connect to it your end computers won't get an ip assigned via wireless (it works via ethernet) but we're fixing the wireless here.
I would, reset the time capsule, start it up, create just a brand new wireless network, ensure it has no internet connection hooked up. Make sure to enable IPv6 connecting sharing under (INTERNET -> OPTIONS), and set it to "off bridged) under (NETWORKED) make sure that "block incoming IPv6 connections" is not enabled under the (NETWORK -> NETWORK). OPTIONS). Once you have that setup and the wireless network works and you connect to it. Then connect your Time Capsule WAN port to the modem/router, and then it'll assign IPS to your end computers when you connect to your Time Capsule Wireless network.
Again: If you start up your time capsule with WAN plugged in, basically it just won't work. Another issue too that I ran into. I had this setup working earlier. But then once I restarted, the whole thing diddn't work and I couldn't figure it out at all. It turns out after I had it setup originally, even once it was working, if it restarted and the WAN port was plugged in, it just diddn't work. If I restarted it without the WAN port plugged in, then once it was started plug in it, then I could connect to it wiresly and it'd assign the IPS.
I'm sure this is a bug as you should just be able to have the WAN port plugged in to create a network with time capsule and work, but it doesn't. Once I was able to do this, I was then of course able to extend my time capsule 2TB to my airport express. Making sure once again on the express that the IPv6 connections wasn't blocked, it was in bridge mode andI enabled IPv6 internet connection sharing.
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Also one more thing, after I first setup my time capsule then extended airport express it diddn't orignally work. I had to restart my time capsule (with WAN unplugged) then started it up, then after plugged WAN in. then it wroked once everything was configured and then WAN was last plugged in my entire network worked.