That's one way of doing it but you'll end up getting better coverage with a second ap (specially if you'd run another cat5 to it ;)) Anyways from what I read in the manual the wap54g does NOT support repeater mode. The good news however is that you can connect a wap11 via repeater mode to the wrt54g. But one thing that I do not know is if by default it will drop down to the lowest common deminator (in this case 802.11b 11mb) on the wrt54g. Maybe you could buy one and test it out. If it doesn't work then return it.
If you think that the antenna is going to be the way to go then check out
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