Interior walls are wood lathe with a base and finish coat of plaster laid over it. I am a General Contractor and know my buildings well, and appreciate the tech help regarding my areas lacking a bit in knowledge.
Always nice to work with the guy who does the construction.
Do you think that two inches of plaster (one on either side of the wall) is causing the interfernce?
It doesn't cause interference as that term is used specifically for wireless from other sources.. but metals reflect the signal and solid materials absorb the signal.. the more dense and thicker the material the more signal is absorbed. Wireless at microwave freq travels in dead straight lines.. although the receiver can use reflected signal to help it.. so consider it like a 4" pipe.. from wireless router to client device.. everything in the path of the signal causes issues of some sort.. mostly absorbing signal.. but some glass for instance that is tinted is reflecting it.. the metal content of the glass is enough to prevent signal.. or like a mirror which is of course a flashed thin layer of metal.
Water is the other big one.. add dampness to any material and it will absorb much more signal. As will large water (and meat) bags who get in the way.
Your microwave works at 2.4ghz.. because it is best for heating water. So does wifi at least at the lower band.
So to make sure I understand the physical configuration of my set up, I will connect my Time Capsule to my modem using a CAT5 cable (as it already is), and connect a second CAT5 cable from an ethernet port on my TC to the WAN port of the AirPort Express.
Yes, that is the idea.
The info is here.
http://support.apple.com/kb/HT4145
The article for roaming is referenced in there.. but is this one.
http://support.apple.com/kb/HT4260
What is the difference between CAT5 and CAT5e or CAT6?
Higher speed with higher numbers.. or longer distance at speed.
Cat5 is often actually Cat5e .. which was just a refinement of the standard.. 5 is rated to 100mbit and 5e to gigabit although the distance is not as great.. Cat6 should be used for new installs for longer distance.
If you go to a great deal of work to install network cables it makes sense to use the best.. on the other hand.. Cat5 is likely to do gigabit and speeds are going to take a while to get to 10G. Cable for most people is the least expensive part of the install.. if you install it yourself up to you.
As a note.. the Express only has 100mbit ports anyway.. so it will not matter if you buy an express which cable you use.
If later on you want to upgrade the devices and use gigabit you may not be able to.
That is why cat6 should be used .. but if you test your current cable.. there is a good chance it will do gigabit as long as the distance is say less than 20M of cable.