A true router set up as a repeater is a stand alone device. Meaning it's not attached to any device at all and using the signal from the original source to relay the signal.
What your referring to is called cascading or daisy chaining routers together to extend the signal for more wireless devices or adding more wired devices. This is a very common practice, even I had this type of setup with two Linksys routers (wired, wireless). The key to this type of setup is to have the DCHP enabled on the primary, disable DCHP on secondary router and change IP 192.168.1.1 to 192.168.2.1 and that should do it. http://www6.nohold.net/Cisco2/ukp.as...0&cpage=search