Question : Problem: Setting up Linksys WRT54GS as access point to boost signal in home

We have an AT&T-supplied 2Wire modem/router as our primary router. It cannot be moved since it is located where the internet connection comes into our home and does not provide sufficient signal to our main floor.

So, I'm trying to set up a Linksys WRT54GS as an access point on the main floor to boost our signal.  The firmware on the Linksys is Tomato v1.21.  

I have followed the directions provided on this site:

http://www.smallnetbuilder.com/content/view/30338/228/

This includes unchecking DHCP server on the Tomato (linksys) GUI.  As the directions indicated, I have plugged LAN connection into the Linksys port 1 (as opposed to the port labeled Internet).

I'm now able to access the internet through the new Access Point.  However, I just want to verify a few things to make sure my implementation is proper.

My questions are:

 -- Any issues with setting up WPA on the 2Wire and WPA2 on the Linksys?
 -- Do I need to create any rules or modify any settings on my software firewall or on the 2Wire admin section to allow the Access Point?
 -- Can the Access Point still act as a switch, meaning can I plug another device into a port on the Linksys and expect that the other device will be able to access the network?
 -- Please confirm that the IP address is xxx.xxx.x.64 is higher than xxx.xxx.x.1.  The x's in both cases represent the same series of numbers in both examples.

Thank you.

Answer : Problem: Setting up Linksys WRT54GS as access point to boost signal in home

1.  -- Any issues with..
Should not be... try it.
2.  -- Do I need to create
Should not
3.   -- Can the Access Point still act as a switch
Should. Again, easy to try.
4. -- Please confirm that the IP
I didn't understand this part.