Very confused about our home network

So we have a cable modem with 4 ports.  1 of the ports is attached via ethernet to an Airport Extreme router.  Our devices in the house connect wireless.

So in our family room, we have a weak signal and my wife went to Micro Center and they suggested a D-Link Xtreme N Duo Wireless Bridge/Access Point.  And they sold her a long ethernet to connect to our Airport Extreme router and run it in AP mode.  Not exactly sure why not to run it in bridge mode and not use the cord.  I was also wondering if it might be better to plug the ethernet into the second port of the cable modem instead of the router.

So today on my laptop it was running terrible and then it reported that 2 devices on the network were using the same IP.  Which got me thinking, what device on my network is assigning IPs, or are 2 devices trying to do the job.

Any insight or suggestions to make our setup better would be greatly appreciated.
hrolsonsAsked:
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strungCommented:
Do you have the  Airport Express running in Bridge mode?
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hrolsonsAuthor Commented:
My options are to:

1) Share a public IP address.
2) Distribute a range of IP addresses.
3) Off (Bridge Mode)

It is currently set to #1
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strungCommented:
I assume that, since your modem has 4 ports, it is a combined modem and router. If that is the case, I think you need the AE set to #3 otherwise you are doing double NAT.
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strungCommented:
In other words, your modem is already sharing a public IP address, so you don't need the airport to do that.
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strungCommented:
Also the cable from the modem should be plugged into the WAN port on the AE.
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Jackie ManCommented:
If you are running D-Link Xtreme N Duo Wireless Bridge/Access Point in ap mode, you will have two dhcp servers in your network, i.e. one from airport express and the other from dlink. So, you need to login to dlink and disable its dhcp server.
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hrolsonsAuthor Commented:
I have confirmed that the DHCP server is disabled on the Access Point.  I also chose option 3 above.
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strungCommented:
So is it working now?
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hrolsonsAuthor Commented:
Seems to be working very well.  Thank You!!!
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hrolsonsAuthor Commented:
Acting up again.  Going real slow, losing connection, then on my wireless connection it will say "No Internet Access"
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strungCommented:
Does it work if you are connected directly to the modem by ethernet?
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hrolsonsAuthor Commented:
In the original post I said it was my laptop, but it is a desktop.  I think I found a better driver for the wireless card so I'm hoping that's it.
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hrolsonsAuthor Commented:
I think the driver update for the wireless card helped as well.
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