Then plug a second ethernet cable from your PC to one of the Airport's Ethernet ports. If the PC is set to DHCP, then you should be able to automatically get on the internet with the PC. IF not, read the Airport manual to set up the Network parameters on the PC.
If the Airport is not getting a signal from the cable/dsl modem, then unplug the modem and the Airport from AC power, then plug them in again. If still not, then call your ISP for instructions. Sometimes the ISP has to reset the modem to talk to the new device.
Once you have the PC successfully on the internet through wired Ethernet, read the Airport manual for setting up the iMac.
Impossible to guess whether you will get signal 2 floors away, it all depends on the construction of the house.