Optimum way to deploy two WRT54G(S) routers in a home environment?

"Ensure one router has DHCP turned off and is configured as an access point.
Connect the two routers via ethernet using the non-internet ports
Give both the same SSID / Security settings but select different channels.

The optimal way is to connect both via ethernet (e.g Cat5e). If you cannot run a cable then consider using powerline adapters. Even a ""mid-speed"" connection over 100mbps powerline adapters will give you a connection of 30-60mbps, far more than you'll get trying to connect them wirelessly.

Your last resort would be to setup the second router as a WDS (Wireless Distribution Station) where it acts as a wireless repeater. The problems here are that a) every repeater drops the available bandwidth by 50% and b) it needs to be close enough to get a decent signal."

"Dude I so have that setup, it's cool and pretty easy if you follow this; however, I unlike you, I only have one wireless router running the DD-WRT and my wireless Linksys router connected to the Verizon DSL router-Client mode wireless rocks :-).

http://www.dd-wrt.com/wiki/index.php/Client_Mode_Wireless#Step_1"