Jerry yes they can fail like that. 
I had one of the original models and it lasted 2 years. 
Power supply capacitors go out.
Here is an article from Hardmac the French Mac news site. They have been
documenting the failures of the airport express's.
http://www.hardmac.com/news/2007-04-19/#6670
 

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Jerry
Freeman
Sent: Monday, March 31, 2008 9:25 PM
To: Macintosh topics
Subject: [MacGroup] airport extreme failure

airport express base station (latest) 802.11n and airtunes. two weeks in
use.

yesterday the itunes external speaker function dropped stopped working.
today, after disconnecting and re-plugging, the airport base station
dropped out, "none of your preferred networks are available".  
the base station worked fine up until that point. my neighbor(s)
networks appear, so the airport card seems ok. ran through airport
utility, no joy.

i suspect a failed base station. any wisdom? best...jf

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