Setup of Router as a Client

I am trying to setup a Gigafast WG719-CAPR Wireless G router as a client for an X-box setup. The router itself has a "client" setting in mode selection. The Linksys / Sveasoft router being used as the internet transmitter is set up in a standard ordinary fashion with the encryption off for now for ease of setup. The "client" sees the router - is able to connect and obtain an ip. The router sees the client as a functioning wireless device attached to its network. The ethernet cable of the "client" router is plugged into the lan port marked "1". I suspect i have to turn off the dhcp on the "client". Even then I am not able to functionally obtain internet. Its a Win 98 machine. I have tried the DNS off and on. What other setting changes do i have to make within the router setup to have it work. I am assuming that once the "client" is set up on the network that by plugging the ethernet cable from the lan into the X-box the X-box will be able to connect online.

Another question - with the Linksys router encryption on ( 64bit) the client obtained an ip. I was a bit surprised Is this standard ? Or is this just the way the setup works in order for the 2 devices to start to attempt to communicate to coordinate encryption verification.

Or it just the way things work

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