After 3 days or trial and error, I finally got WDS working in repeater mode with 2 WRT54GS. Here is what I did: (1) Both routers have the Satori 4 free firmware. MAKE SURE you do a complete reset (hold down the reset button for 30 seconds) BEFORE and AFTER firmware update!!!!! (2) My router 1 connects to WAN via DSL and set up as PPPoE. My router 2 acts as the repeater and set up as "automatic DHCP" on the WAN menu. I turn off DHCP server on router 2 since it is a repeater. All IP are generated via router 1. (3) My router 1 DHCP server starts from 192.168.1.100 and IP address for router 1 is 192.168.1.1. For router 2 (the repeater), its IP address is set as 192.168.1.10 and gateway as 192.168.1.1. (4) Note the MAC address from status or admin menu (sorry I am not in front of the router right now) for both routers. (5) For router 1, go to the wireless->WDS menu. Leave lazy WDS off. Do not fill in the lowest part you need to plug in the IP address. All you need to do is fill in the upper part of the menu with the MAC addr of router 2 and set the type to be LAN. What I actually did was setting up 3 MAC addresses: the router 2 MAC, router 2 MAC + 1, and router 2 MAC -1. So if the MAC is 00:01:02:03:04:05, I will also add 00:01:02:03:04:04 and 00:01:02:03:04:06 to the list. The reason I did this is that WDS was not working for the first time when I only have the single MAC in both routers. The MAC+1 and MAC-1 addr may not be necessary. (6) Do the samething for router 2, entering MAC addr for router 1. (7) Make sure wireless channels are the same for both router2. Make the SSID DIFFERENT so that you know which router you are associating with when you try it out. I would turn off WEP initially until everything is working. (8) MAKE SURE to turn off loopback and firewall for both routers!!!!! (9) Now you should be able to get the wireless working. The indication that WDS is working is that you can associate to either SSID and get internet access. You should also be able to login to both routers. Have fun!