WDS is Wireless Distribution System think of it as cell tower hopping.

Both the Extreme and Express are (in addition to N) B/G compliant so
your best bet is to set up them up to use that. Using WDS to create a
larger network for your Squeezeboxes to join.

As for the other side of things, I guess you want to make use of
Airtunes?

Best way I can think of is running a copy of SqueezeSlave on the
server, along with Airfoil - $25 http://rogueamoeba.com/airfoil/ -
select the SqueezeSlave application and away you go.


-- 
Cabe
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