Since the Windows 7 machine works perfectly with my 'Sky wireless connector' (the rebadged AirTies Air 4400) does this not suggest that the conflict between it and the Airport Express is more likely to be a Win 7 issue rather than a problem with the NIC? But it will be interesting to see if you have any problems although if your Airport Express is wired to your router it doesn't exactly replicate my situation.
Thanks again.
Well AirPort Expresses currently use a Qualcomm Atheros chipset. Most other wireless routers and APs use Broadcom. The new AirPorts like the Extreme and Time Capsule use Broadcom. It is possible the Windows 7 NIC has an issue with Atheros chips. Try using something like a linux live cd and the AirPort Express. You will know really quickly if it is a setting on Windows 7 or the NIC.
AirPorts are generally great! I tried the Windows 7 machine today and it was fine. Had to go in a ceiling to get to one of them but it worked beautifully. Shut down, restart, sleep, voodoo chants all worked fine.