DSL -> WiRouter -> LAN1 -> Bridge -> WiRouter -> LAN2

Currently sharing a DSL connection with a neighbor (who has the DSL router and wireless access switch). My connection is poor in some areas of the house, but good in others. I want to accomplish two goals:

1) Have good connection all over my house. 2) Set up a private network that gets internet from the existing wireless LAN.

Existing equipment: DSL Router -> ROUTER1 (Linksys BEFW11S4) -> LAN1 (64-bit WEP enabled)

Proposed configuration: Attach to LAN1 -- BRIDGE2 (Linksys WET11) -> ROUTER2 (Linksys WRT54G) -> LAN2 (use unique WEP key)

If the default gateway for LAN1 is 192.168.1.1, then I plan to set up ROUTER2 so that it points to 192.168.1.1 with LAN2 configured as

192.168.2.x

Wireless equipment in my house would access the SSID for LAN2. My neighbor would access LAN1.

Questions:

1) Is there a simpler way to do this? Ideally you could have ROUTER2 be a bridge to another wireless network as well, but I can't find a product that does both bridge to an existing network and route for a new network - at least in the inexpensive home networking product lines.

2) I VPN into my work system. Am I going to get myself in trouble going through two Linksys routers?

3) Is there typically a limitation on the number of connections that originate below ROUTER1 (including the devices connected through ROUTER2)?

Thanks for any input.

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stlc
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