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My AirPort Express is showing a permanent orange light. Every ~5 minutes it blinks green once and after this I get continuos yellow.

The AirPort device is connected via LAN to my Linksys WRT-160NL router that is configured with DHCP enabled - is supposed to give and IP to the AirPort.

The AirPort is undiscoverable via LAN or WiFi.

If I try the hard reset procedure, all I get is flashing yellow led after few seconds but no other effects.

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Is it older than a year? AE power supplies eventually fail due to internal heat. At least one failure mode - the one I recently observed - is just as you described it. If I kept trying, I'd occasionally get a green light and Airport Utility would discover it long enough for me to set a configuration, but it would soon fail again and go back to a slow-blinking yellow light. It would happen just often enough to keep me trying to revive it, but I finally let it go after sinking a couple of hours into it. At least in the US, if it is being used with a system that has AppleCare coverage, I believe the AE will be covered too. I hope that option is open to you.

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Confirmed, hardware failure. – sorin May 29 '11 at 21:25
Sorry to hear it. Thanks for the feedback. – JRobert May 30 '11 at 18:25
If any of your gear is covered by AppleCare you can claim the AE and get a new one for free. AppleCare on a computer covers the Apple networking gear used to get that computer online. I've had two AEs replaced that way. – Richard May 26 '12 at 2:37

Take a look at the status codes article over on Apple's site.

Solid yellow - There was an issue starting up. AirPort Express will restart in 60 seconds.

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This is not a permanent solution, but I have had considerable success by placing the Airport Express in a ziplock bag and leaving it in the refrigerator anywhere from thirty minutes to several hours.

Once I plug it back in, the router works fine for many hours.

As @JRobert answers it's very likely overheating, but this can push back the upgrade/replacement date for quite a while.

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